Benzy15
New Member

Sale of rental property, only owned property for 4 of 5 previous years.

Hi.  Thank you in advance for your assistance.  I purchased a property in 2009 while living in SC.  I moved to CA in September 2014 but continued to own my property in SC and rent an apartment in CA.  The SC property remained vacant Sept 2014 through May 2015 as I tried unsuccessfully to sell it.  In June 2015 (unable to sell the house), I took on a renter who rented the SC property from June 2015 to August 2019, during which time I rented an apartment in CA (so only owned a single property, from which I received rental income).  In July 2019, I purchased a property in CA (so property #2), which became my primary residence.  In August 2019, my rental property in SC was vacated.  In December 2019, my rental property in SC was sold.   So, since I did not live in the SC property for 2 of the past 5 years, it seems that I'll incur capital gains taxes from the sale.  However, for most of the 4 year rental (minus 2 months) the SC rental was my only owned property (I only received rental income with the SC property as my "second" property for 2months).  Help!