MichaelDC
New Member

Investors & landlords

Yes. If you sold this property for a profit and it was your primary residence for at least 2 of the last 5 years, you may qualify for the capital gains tax exclusion. Ordinarily, on a rental, you would need to recapture any depreciation allowed or allowable (regardless if you claimed it or not), as capital gains income, and pay taxes on that amount.

However, you shouldn't have depreciation for an asset (house) that you put in service and disposed of in the same year.

You will have to report it as a sale of rental property. You'll still get all of your exclusion.

Please feel free to post any additional details or questions in the comment section.





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