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prezap9991
New Member

As military, do I get a capital gains exemption on the sale of a rental property? I lived in the home for 11 months before reassignment. It has been rented for 11 years.

 
1 Reply
TaxGuyBill
Level 9

As military, do I get a capital gains exemption on the sale of a rental property? I lived in the home for 11 months before reassignment. It has been rented for 11 years.

Probably.

If you moved for a 'job change' (such as reassignment in the military location) and you have been in the military for all of that time, yes, you qualify for a reduced maximum exclusion (assuming you have not excluded another home in the last 2 years).  You would qualify to exclude up to 11/24ths of $250,000 ($500,000 if Married Filing Jointly, and I think you usually use days, not months).

However, you will still pay tax on the depreciation that you claimed as a rental property.  That does not qualify to be excluded.

TurboTax should walk you through it, however, the screens can be tricky, so read each screen very carefully.

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