Really appreciate the insight. I assume TurboTax Premier will step me through this. In short, bought home in 2000 for 121,000. Lived there full time except the past 18 months when took on renters (we moved out). Now that rental is over, we are selling. Realtor says likely will sell around $160,000. State equalized value is $88,000 (which in MI is doubled to get the estimated value - $176,000). My hope is that since it only went up in value, if sold at 160,000, by 39,000 - it hasn't kept up with home values, so perhaps little to no gain (aka no tax for Federal or CA)?
