Investors & landlords

If it is all one "dwelling unit" (that usually means a shared kitchen), you would only pay tax on the depreciation, but not on any of the other gain.  You pay tax on the depreciation you took, but nothing else.

That is assuming that you live in the home for at least 2 years (730 days) and have not 'excluded' (not pay tax on) the tax on another home in the last two years.

If it is two separate units (like a duplex), you could only 'exclude' your half of the home.

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