How to report sale of an Australian Home used for 7 years as primary residence, then 7 years as Rental

[theflaim]

Hello,

I have lived and worked in Australia since 2009, and am a dual citizen.

We sold a residential property in Australia that was used for 7 years as a primary residence, and then 7 years as a rental property (because we purchased a new property).

How do I report this sale with mixed usage?

My wife is NOT a US citizen, so I generally file as Married Filing Separately or Head of Household.

Thank you

[Mike9241]

report the sale as a sale of rental property assuming it was still a rental in the year you're filing. This should result in the proper reporting including any depreciation recapture. If you failed s to take depreciation consult a tax pro. Note the requirement to report in US $

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if it was no longer a rental in the year your filing, you can use the home sale worksheet, don't forget to report the depreciation.  

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you are not entitled to any home sale exclusion because it was not your primary residence in the any of the 2 years in the 5 year period before the sale. 

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if you paid taxes to Australia on the gain, you would be entitled to the foreign tax credit