Our primary residence was listed for sale 10/15 but didn't sell until 1/17. In 7/16, it was listed for sale or rent. It was never rented. Tax implications? Best way?

[racheldroberts]

The listing was changed to for sale or rent (Jul 16) from for sale only and it was never looked at or rented as a rental property. This was our primary residence from Sep 12 to Oct 15, thus, don't think we will owe any cap gains. Should we list half year as rental or will that cause unneccessary payment of cap gains? Which is the optimal strategy?

[Cattlerancher · Accepted solution]

You said it was never rented, so you never received rental income and I'm assuming you never claimed depreciation on the property in 2016 (even if you had you may still be exempt from capital gains tax). You have lived in the home for two of the last five years so you should be good to go. To be sure, just enter the sale of the home in TurboTax under "Sale of Home". That can be found by clicking on Personal tab at top, Continue, I'll Choose What I Work On, scroll down to Less Common Income, Sale of Home. Follow the interview to confirm your question.