Hello,
I need help understanding on this whole selling a house thing and calculating depreciation. I brought a house in 2013 for 223,000. I rented it out for the first 3 years, then I took over as my primary residence. I sold the house in 11/2021 for 525,000.
I enter all the info in software but left the depreciation value at 0 since I am not sure how to calculate that. Anyways at the end of it, I don't have to pay any income taxes on 162,000 BUT I do have to pay a capital gains tax 97,000. Which when done I owe $13000.
I am filing jointly and did get a substitute form 1099-S. Is that correct, or is it something I am not understanding correctly? I thought anything over 250k for single and 500k jointly, you don't have to pay any taxes? Should I just not report the sale of my previous home?
