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posted Jun 4, 2019 2:39:23 PM

If I convert my rental home to my primary residence how long do I have to live in it so I do not have to recapture depreciation and pay tax on the capital gain?

I converted my home to a rental in 2011. If I move back in for at least 2 years will I have to recapture depreciation? Will I have to pay tax on the capital gain?

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Expert Alumni
Jun 4, 2019 2:39:24 PM

You must use the home as your main residence for at least two years in the five-year period before you sell it. You also must not have excluded another home from capital gains in the two-year period before the home sale. If you meet those rules, you can exclude up to $250,000 in gains from a home sale if you’re single and up to $500,000 if you’re married filing jointly.

1 Replies
Expert Alumni
Jun 4, 2019 2:39:24 PM

You must use the home as your main residence for at least two years in the five-year period before you sell it. You also must not have excluded another home from capital gains in the two-year period before the home sale. If you meet those rules, you can exclude up to $250,000 in gains from a home sale if you’re single and up to $500,000 if you’re married filing jointly.