511,314
Actually, you need to speak with a knowledgeable tax professional regarding your situation. Do not assume that because you live in the home as a primary residence that you get to exclude the gains you made during the rental years. The rental years will be considered "nonqualifying" years towards your capital gain exclusion. You may still be on the hook for the gains made during the rental years.
Only someone with intimate knowledge of your prior year taxes can tell you for sure.
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Tony and Suzanne Marri...
Scottsdale, AZ
-
Margaret Rome Baltimor...
Pikesville, MD
-
Pete Xavier
Pacific Palisades, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
-
Candice A. Donofrio
Fort Mohave, AZ
1,057,664
This is a great question, it's not a simple question, everybody who has stated that you need a CPA or tax professional to answer it is correct, and Joseph is the most correct of all!
-
Pete Xavier
Pacific Palisades, CA
-
Margaret Rome Baltimor...
Pikesville, MD
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
1,555,095
2/5 year s you must reside in the house. You have 1 year to go.
" if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale"
-
Michael J. Perry
Lancaster, PA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
-
Thomas J. Nelson, REAL...
La Jolla, CA
7,871,821
You will find the details on the IRS website.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
-
Nina Hollander, Broker
Charlotte, NC
613,494
My opinion is that first you have to convert that property into your primary residence...(for tax purposes) then you must have lived there 2 of the last 5 years.
Then you have to put all of the "gains" into the new property.
Check with a good CPA.
Eve
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Margaret Rome Baltimor...
Pikesville, MD
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
1,956,062
Even though I think I might have the right answer, I always defer to a tax attorney to help you decide the right course of action.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Nina Hollander, Broker
Charlotte, NC
5,773,367
Like Candice A. Donofrio said, contact your CPA or tax attorney. They have the answers you need. A
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Candice A. Donofrio
Fort Mohave, AZ
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
4,584,596
Talk with your tax prepare or a quailed intermediary.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Ron and Alexandra Seigel
Carpinteria, CA
5,117,178
You need to get that kind of advice from your CPA or tax attorney. Realtors cannot give tax advice without jeopardizing their licenses.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
5,583,328
I'm confident a CPA will have the right answer for you....
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
3,350,764
That is a great question to ask your tax professional.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
5,258,966
I've always been told 2 of the LAST 5 years but, that is something that you would need to confirm with your CPA, based on the way you have shown rental income on your returns each of those years.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
902,538
My understanding is 2 year-wait to be taxed as homeowner. Check with your accountant; difference may not be huge depending on amount of cap gains in question.
-
Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
-
Debe Maxwell, CRS
Charlotte, NC
250,399
Anonymous, we are all trained to "stay in our lane", to only offer legal advice on the topics of buying and selling homes. Anything outside of that, like tax advice, is not what we are specifically train in.
-
Margaret Rome Baltimor...
Pikesville, MD
-
Mimi Foster
Colorado Springs, CO
2,684,769
This is complicated, because you used it as a rental. First, you have 15 non-qualifying years (see the answer from Joseph Domino 480-390-6011 ).
Find a CPA who is skilled in legal tax avoidance; ask her or him what can be done. It is imperative that you comply with the rules and requirements of the Internal Revenue Service.
-
Candice A. Donofrio
Fort Mohave, AZ
-
Margaret Rome Baltimor...
Pikesville, MD
971,183
I always run such question by my CPA.
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
679,404
The best advise is Seek the answer to this question from a professional CPA ... best wishes!
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
5,063,430
I would check with your CPA.
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Bob "RealMan" Timm
Minot, ND
-
Diana Dahlberg
Pleasant Prairie, WI
2,195,824
You need the 2nd year , ALSO
you may have to Recapture all of the Depreciation you took , at 25% ????
-
Michael J. Perry
Lancaster, PA
3,071,589
Joseph Domino 480-390-6011 nailed this one!
-
Candice A. Donofrio
Fort Mohave, AZ
3,864,791
Interesting questions and some good answers but the overwhelming response...get the proper advice from the proper professionals. Then come back and let us know what that person has to say.
-
Fred Griffin Florida R...
Tallahassee, FL
1,598,452
2,071,025
5,879,816
1,242,204
1,507,073
I'd talk to a tax pro on this. There may be other factors and other things you can do.
4,434,177
5,246,557
577,750
I would check with a knowledgeable Chartered Accountant, or the CRA. or in your case the IRS
4,800,132
4,319,873
3,168,284
Because it was an investment rental my non CPA opinion is you cannot avoid capital gains, but hire a savvy professional to get a professional opinion.
6,426,149
3,988,013
I know the answer but if I tell you that makes me a Friday night part-time tax advisor which I am not licensed or qualified to be.
482,547
As others have written, you need to consult a tax professional, perhaps a couple, to determine your actual situation.
Good luck,
Bruce
1,712,876
2,403,205
It depends on what gain you get from the sale and if you are single or married. I can't tell you with this little information but your accountant should be able to sort it out for you.