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Investors & landlords
You 'do' need to report the sale, only because you are required to recapture depreciation and pay taxes on that recaptured depreciation. Depreciation is not included as a part of the exclusion. However:
It was rented from 8/2/2021 and sold on 11/7/2021
Did you mean you sold it in 2023? If so, then you do need to report the sale, because of the required depreciation recapture you'll have to pay taxes on.
OTHERWISE:
If the property was converted to a rental, and then sold in the same tax year of that conversion, you are not required to even take depreciation. Therefore, recapture would not be required.
‎February 27, 2024
4:42 PM