When to sell the temporary rental
By Brint Wahlberg, The Wahlberg Team
(Windermere Real Estate)
When to Sell the Temporary Rental - 4/15/2013 Some homeowners, who were not able to sell during the recession, chose to rent their homes instead. In some cases, they didn't need to sell their home at the depressed prices and opted to rent it until the market recovered. It's a valid strategy but there are time restrictions that could have serious tax implications for some homeowners. The section 121 exclusion for gain in a principal residence requires that the home is owned and used as a main home for at least two years during the five year period ending on the date of the sale. This allows a homeowner to rent their home for up to three years and still have some part of the exclusion available. The sale of a home with a $200,000 gain that qualifies as a principal residence would resul...