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Investors & landlords
The job-related move overrides the requirement to have used it as you Main Home for the last 2 out of 5 years, but that doesn't change the other proration due to Nonqualified Use.
It looks like you will have owned it for 11 years. The 3 rental years before the 18 months can NOT be excluded, so you will pay tax on 3/11ths of the profit (the actual calculation uses days, rather than years), plus depreciation.
So let's say you bought the home for $200,000, took $30,000 of depreciation, and sell it for $300,000. In that scenario, you will owe long-term capital gains on $27,272 (3/11th of the $100,000 profit), plus tax on the $30,000 of depreciation (taxed at your regular tax bracket, up to 25%).
It looks like you will have owned it for 11 years. The 3 rental years before the 18 months can NOT be excluded, so you will pay tax on 3/11ths of the profit (the actual calculation uses days, rather than years), plus depreciation.
So let's say you bought the home for $200,000, took $30,000 of depreciation, and sell it for $300,000. In that scenario, you will owe long-term capital gains on $27,272 (3/11th of the $100,000 profit), plus tax on the $30,000 of depreciation (taxed at your regular tax bracket, up to 25%).
‎June 6, 2019
6:44 AM