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Investors & landlords
In the sale of rental property screens, you will encounter one asking about the property also being your primary home. If during the 5 years prior to the sale, you met the qualifications, you can exclude all or some of those gains. You are still selling a rental property, you are just using the exclusion for the personal part if you qualify. This will not include the depreciation you took when it was a rental.
You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you're Married Filing Jointly, you won't pay taxes on the first $500,000.
That income is excluded as long as:
- You owned the home
- It was your main home for two years or more within the five years leading up to the sale
- You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.
‎April 16, 2022
6:16 AM