MinhT1
Employee Tax Expert

Investing

Since you have lived in the house for more than 2 years in the last 5 years before the house is sold, you are eligible for the capital exclusion of $250,000 ($500,000 if filing jointly).

 

Please read this IRS document for more information.

 

You have to recapture the allowable depreciation while the house was rented and pay tax on the recapture..

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