I found instructions for the 2014 tax year, but I'm not sure that they apply for 2015. I did live in the rental property for 2 of the past 5 years, then rented it out, so I believe and very much hope that I can qualify for the capital gains exclusion.
Also, I've been through this scenario before. I lived in the same property for 2 years (2005-2006), then rented out for 5 years (2006-2011). I then moved back to the property and lived in it for another 2 years (2011-2012), then rented it from 2012-2015 before I sold it. So do I have to recapture the depreciation from the first time I rented it, or can I start from the second time I rented it?
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[edited] Yes, you can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. You could live in it for two years and then rent it for three years and then sell it (so long as it is sold within the five year mark from when you first lived in it as your primary residence).
See this IRS link for more information on the exclusion:
https://www.irs.gov/taxtopics/tc701.html
If you rented the home before selling, then enter your home sale under the rental section. Select "Yes" to Home Sale under the Sale of Assets section under Rental Summary Screen.
To enter this transaction in TurboTax, log into your tax return and type "rental (schedule e)" in the search bar then select "jump to rental (schedule e)", TurboTax will guide you in entering this information
Alternatively, To enter this transaction in TurboTax Online or Desktop, please follow these steps:
If you did not rent your home during the tax year, you will need to enter this sale under the Sale of Home section.
To enter the sale of your home in TurboTax Online or Desktop, please follow these steps:
Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S (screenshot #5)
Sale of rental house if conversion of a primary residence to a rental : In order to calculate the capital gain or loss when you sell a residence that had been converted to rental property, you need to know three things:
If the converted property is later sold at a gain, the basis for purposes of determining the capital gain is your adjusted tax basis in the property at the time of the sale. If the sale results in a loss, however, the basis used is the lower of the property's adjusted tax basis at the time of the conversion or the fair market value when the property was converted from personal use to rental property. This loss rule ensures that any deflation in value occurring while the property was held as a principal residence does not later become deductible upon your sale of the rental property; a loss on the sale of a principal residence is not deductible. As usual, you calculate your capital gain by subtracting your adjusted basis from the sale price of the property
[edited] Yes, you can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. You could live in it for two years and then rent it for three years and then sell it (so long as it is sold within the five year mark from when you first lived in it as your primary residence).
See this IRS link for more information on the exclusion:
https://www.irs.gov/taxtopics/tc701.html
If you rented the home before selling, then enter your home sale under the rental section. Select "Yes" to Home Sale under the Sale of Assets section under Rental Summary Screen.
To enter this transaction in TurboTax, log into your tax return and type "rental (schedule e)" in the search bar then select "jump to rental (schedule e)", TurboTax will guide you in entering this information
Alternatively, To enter this transaction in TurboTax Online or Desktop, please follow these steps:
If you did not rent your home during the tax year, you will need to enter this sale under the Sale of Home section.
To enter the sale of your home in TurboTax Online or Desktop, please follow these steps:
Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S (screenshot #5)
Sale of rental house if conversion of a primary residence to a rental : In order to calculate the capital gain or loss when you sell a residence that had been converted to rental property, you need to know three things:
If the converted property is later sold at a gain, the basis for purposes of determining the capital gain is your adjusted tax basis in the property at the time of the sale. If the sale results in a loss, however, the basis used is the lower of the property's adjusted tax basis at the time of the conversion or the fair market value when the property was converted from personal use to rental property. This loss rule ensures that any deflation in value occurring while the property was held as a principal residence does not later become deductible upon your sale of the rental property; a loss on the sale of a principal residence is not deductible. As usual, you calculate your capital gain by subtracting your adjusted basis from the sale price of the property
I need to file and amend my 2019 tax return
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