@mack12345 wrote:
@LeonardS For the property that was my residence for roughly 13 years, then a rental for roughly 3 1/2 years, then my residence again for little over 2 years... I used Turbo Tax for 2019 entered the number of days as rental. In 2019, it was rented 274 days Jan 1-Oct 1, 2019). Then it became my residence (Oct 2-,2019). I need to know if there is anything else I should have done on my 2019 taxes to indicate it became my residence on a certain date (Oct 2,209) as I barely met the 2 year out of 5 year rule on COE Oct 8, 2021. Thank you
It's hard to give you a clear answer because the facts keep changing, you owned the home 5 years, now 18 years.
Non-qualified use means that a landlord can't convert the taxable sale of a rental into a tax-free personal home. The IRS stopped including a detailed description of non-qualified use in IRS publication 523 around 2013, but it is still in the regulations and in the worksheets for calculating gain.
In your case, because it was your main home, then you moved out, then moved back in, the middle period is non-qualified. Here, it's about 3/18 of your ownership (you will actually figure it out to the month or to the day.) I believe Turbotax should ask for all the dates--purchase, move out, move back, and sale, and determine your exclusion that way. You will need your tax returns from when the home was a rental to get the depreciation numbers that you claimed. Turbotax should also ask about that.
