Deductions & credits


@Anonymous wrote:

I bought at house and lived in it for 14 months. I got a new job across the country, moved, and rented out the house for 20 months. Now I'd like to sell. 

My understanding, from the worksheet in 523, is that I can take 54% of the exemption (14/24.) 

 


 

You can take 54% of $250,000/$500,000.

 

That exclusion does not cover depreciation for the rental.

 

So if your gain is less than 54% of $250,000/$500,000, you will only pay tax on the gain due to the depreciation when it was rented.