turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the Refund! >> Event happening NOW!!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

We are selling a home that was our primary residence for 9 years and a rental the next 5 years. Will we pay taxes on full amount of capital gains or a % of that?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

We are selling a home that was our primary residence for 9 years and a rental the next 5 years. Will we pay taxes on full amount of capital gains or a % of that?

You will pay tax on 100% of the gain since you do not qualify for the Section 121 exclusion for the sale of a principal residence (i.e., you would not have owned and used the house as your principal residence for at least 2 out of the last 5 years prior to the sale - it was a rental).

 

Consequently, you will pay tax at applicable the long-term capital gains tax rate and, likely, Section 1250 unrecaptured gain (that rate is a maximum of 25%) for depreciation that was allowed or allowable.

 

See https://www.irs.gov/publications/p544#en_US_2018_publink100072661

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies