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Rented Before Selling |
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Ms. Lank, I recently read in one of your columns about an exclusion from capital gains if you lived in a house at least two years prior to your selling. We had a property we sold last year. We did live in it for three years before renting it for two years. Does the fact we rented it change our eligibility for the exclusion? We are somewhat confused |
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It sounds as if you owned and occupied the house as your principal residence for at least two of the five years before you sold it, which would mean that yes, your sale qualifies for the homesellers exclusion on federal capital gains tax. The only tax you owe would be on the depreciation you claimed (or could have claimed) as an expense while the property was rented out. Discuss the matter with a CPA or an enrolled agent, to see if you should file an amended tax return requesting a refund. |
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Edith
Originally published on June 18, 2005 |
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