How do I decide whether to sell my US home or rent it out when I move back to India?

Run the numbers on both the US and India sides. If you sell within the ownership-and-use window, the US home-sale exclusion can shield up to $250,000 of gain ($500,000 married filing jointly), a benefit you lose once you've rented it out too long or moved out for years. Renting produces US-source rental income taxable in the US and, once you're an Indian resident, also reportable in India with a foreign tax credit to prevent double taxation, plus you take on landlord duties from overseas. Selling gives a clean break and repatriable cash but forfeits future appreciation. Consider timing the sale to still qualify for the exclusion, and factor currency risk on the proceeds. A cross-border tax pro can quantify the exclusion window for your dates.