If I rent out my Florida homestead, what happens to the exemption?

Fla. Stat. 196.061 says renting all or substantially all of a former homestead is treated as abandoning it until the owner physically occupies it again. A rental after January 1 does not affect that year's exemption unless the property is rented more than 30 days per calendar year for 2 consecutive years. Service members and certain federal officers have exceptions.

Can renting my home first affect the capital gains exclusion?

IRS Topic 701 generally allows up to $250,000 of gain to be excluded, or $500,000 on a joint return, if you owned and used the home as your residence for at least 24 months of the 5 years before the sale. Your tax professional can tell you how renting would affect you.

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Rent it or sell it?

Type the address and see both sides at once. We won't tell you which to choose. We'll show you what the records say and what usually decides it.

What usually decides it

Five questions worth answering before you choose.

Was it your homestead?

Florida's statute treats renting all or substantially all of a former homestead as abandoning it until the owner moves back. It says a rental after January 1 doesn't affect that year's exemption unless the home is rented more than 30 days per calendar year for 2 consecutive years, with exceptions for service members and certain federal officers. The Property Appraiser can tell you how it applies. Fla. Stat. 196.061

Would renting use up your tax window?

The IRS generally lets you exclude up to $250,000 of gain, or $500,000 on a joint return, if you owned and lived in the home for at least 24 months of the 5 years before the sale. How renting affects that is a question for your tax professional. IRS Topic 701

What does the loan, insurance or association allow?

Mortgages can have occupancy terms, landlord insurance can differ, and associations can have rental rules. Your lender, insurance agent and association can answer for your home.

Is it ready, and do you have a cushion?

Rentals have empty months and repairs. Selling has closing costs and maybe repairs up front. Run your own numbers on both.

What could it net as a rental? What would I walk away with?

Do you want to be a landlord?

If you'd rather not take the calls, our management fee is published: 10% of rent collected, with a new lease fee of 50% of the first month's rent. See all fees

General information, not tax or legal advice. We are real estate professionals, not attorneys or tax advisors. Sources read November 2026. Laws change and situations differ, so ask your tax professional or attorney. RLW Realty.