You will qualify for an exclusion on the gain on the sale of your principle residence (up to 500,000 for joint filers) under the suspension for military service exception. However, the property was a rental for 2014-2023 and the depreciation you could have taken over those years is not part of that exclusion.
- Using the "Sale of Home" topic in the "Less Common Income" dropdown
- Enter the purchase and sale information
- Answer the questions about ownership and residence
- You will answer No, you did not meet the residence criteria initially.
- Later you will be asked about the reason for the sale
- Select "Other"
- On the next page select the "Military service" item
- You will then be asked if you meet the residence requirement with the suspension
- Answer "Yes"
- Now the exclusion will be activated
- Next, you will be asked about any unqualified use
- Answer No
- Then you will be asked about using the property for business or rental
- Answer Yes
- You will be asked to enter the depreciation you could have taken during the rental period
- It does not matter whether you actually took the depreciation; you must claim it
- Continue
- Your exclusion minus the depreciation recapture will be shown
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
