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MalcolmBelt
Returning Member

Military sale of a rental property

Good Morning,

 

I am active duty military and have a rental property that was at one point my primary home. I lived in the home from 2009 to 2015. In July 2015 I moved out of the area (Hampton Roads VA) on official military orders and rented the house. In July 2018 I moved back to the area (Hampton Roads VA) but continued to rent the house. I am now selling the property with a closing date in July 2021. During the entire time I rented the property I claimed depreciation. I know that in the sale of a rental property you are exempt from capital gains taxes if you lived in it for 2 of the past 5 years as your primary residence and that military members who are on qualified official orders may suspend that 5-year period for up to 10 years. Does my scenario meet this criteria?

 

I also recognize that I will owe taxes on the depreciation of the property that I claimed while I was renting it.

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2 Replies

Military sale of a rental property

What you say is all true however entering it in the TT program will require attention to details and patience.   You will sell the assets in the Rental section  and indicate it needs special handling so you can get the exclusion.   I highly recommend you either upgrade to the LIVE version or seek local professional assistance.

Carl
Level 15

Military sale of a rental property

Does my scenario meet this criteria?

Yes. The program can handle it also. But it's extremely important that you pay attention to detail. The small print matters. Also, there is a difference between "select the one that applies" and "select all that apply". So careful there.

 

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