What happens to my capital gains exclusion if I rent out my Daniel Island home?

Renting out a Daniel Island home changes how the federal capital gains exclusion applies, since the exclusion requires the seller to have owned and used the home as their primary residence for a meaningful part of the years before the sale, and time spent renting it to a tenant does not count toward that requirement. A seller who converts their home to a rental and later sells may still qualify for a partial exclusion depending on the timeline, but the math gets more complex than a straightforward primary-residence sale. A CPA should run the actual numbers for the specific dates involved before a Daniel Island owner lists.