Renting out my home

[thaicobb7]

I lived in my home for over two years and then bought a new home. I rented out my previous home for two years before selling it. When I sold it I made about $60,000 profit. I know that if I had not rented the house out I would not have owed taxes on the profit because I lived in it for over two years. My question is, does renting it out now make me liable for taxes.

[PattiF]

No, you are not liable for taxes on the profit that you made from selling your house. As long as you lived in it for two of the last five years, you don't have to pay capital gains tax if you made more than $250,000 if single, or had a gain of $500,000 if married filing joint.

IRS Publication 523 has the tax rules that apply to the exclusion of income from the sale of your main home.

[AmeliesUncle]

Prior to renting it, was it always used as your main home since you owned it?

You will still owe tax on the depreciation from the rental period.