My question are two questions, the first I had a rental property for 10 years that I had converted into a residence. 2023 the renters moved out in May and I started renovations that took a year to complete. During the renovations I did not live in the house until everything was completed. How will this effect my taxes? Does having the house vacant during the renovations effect my taxes on either houses?
The second question is during this time I lived in my primary residence and lived there for over 20 years. I lived at this residence until I was able to move into my new residence in June 2024. Does the prop 121 rule still apply when I moved from one primary residence to the other in June 2024? And can I now rent my old primary residence for 2 years to keep it under the prop 121 rule? Primary for 2 years out of 5 years and then sell it?
