Can I exclude the sale of a rental home that was my primary residence for 3 out of 5 years?

Forum|Forum|6 years ago
July 15, 2020
5 replies
28 views

I purchased this home in 2013 and lived in it until 2016. I rented it from 2016-2019 and sold it in 2019. Do i have to report the sale of this home or can i exclude the gain from the sale of this home?

TurboTax Live Premier Online

AmeliesUncle

Level 15

Yes, you need to report it.

Yes, you can exclude the gain except for the depreciation you were eligible to take.

jhewatt91Author

Level 2

So when I report the sale of the home through TurboTax, it is saying that I have to pay capital gains on part of the gain of the sale. I’m guessing because it was rented for 2 years. Is this correct? I just thought that if I lived in the home for at least two years then that excluded all capital gain tax on the sale.

AmeliesUncle

Level 15

You can exclude all of the gain (up to the $250,000/$500,000 limit) except for the depreciation. If it is taxing more than that, go back through the questions and read them very carefully.