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keith5
New Member

Sold a primary home I lived in for 4 years bought in 2009, but rented out the last 2.5 years. Does it still qualify for exception from the gains?

I have made a large gain. Your instructions within Turbo say no and it says yes???
Did You Use This Home for Anything Other Than Your Primary Home? But the note for this question say to answer no if use for reasons other than primary??????
  Can you clarify?
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Accepted Solutions
Phillip1
New Member

Sold a primary home I lived in for 4 years bought in 2009, but rented out the last 2.5 years. Does it still qualify for exception from the gains?

If there was at least 2 primary residence years within 5 years of the sale date, the home will qualify for the full gain exclusion on all of the gain but the amounts that you deducted for depreciation while the home was being rented out.

  • On the question "Did You Use This Home for Anything Other Than Your Primary Home?" you need to answer No
  • Continue to the screen labeled "Depreciation After May 6, 1997" and answer yes. 
  • On the following screen you will enter the depreciation that you claimed on the rental.

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1 Reply
Phillip1
New Member

Sold a primary home I lived in for 4 years bought in 2009, but rented out the last 2.5 years. Does it still qualify for exception from the gains?

If there was at least 2 primary residence years within 5 years of the sale date, the home will qualify for the full gain exclusion on all of the gain but the amounts that you deducted for depreciation while the home was being rented out.

  • On the question "Did You Use This Home for Anything Other Than Your Primary Home?" you need to answer No
  • Continue to the screen labeled "Depreciation After May 6, 1997" and answer yes. 
  • On the following screen you will enter the depreciation that you claimed on the rental.

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