ColeenD3
Expert Alumni

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.