SBZ
Level 1

Client converted a personal residence to a rental & put it in a LLC that they but chose to be taxed as a partneship with IRS. The married couple are the only members. They have filed one ptr return. They thought the house would still qualify for the capital gain exclusion but I don't think so since it is owned by the partnership.  Any ideas on a way this ownership would qualify for the gain exclusion?  Thanks for your thoughts!!

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