Rental Property Sale

[a3249532]

I sold a rental property in February 2021.  I purchased the property in 2004 and lived there until 2019 when I started renting it out.  I am currently renting a house where I am living but, I plan to purchase a primary resident March 2022.  From the sale, I will have about 50K  profit.  Is this money taxable on my 2021 income taxes?

[Michele_H]

Hi @a3249532 there is a possibility that a portion of that can be taxable since it was turned into a rental in 2019.  There are a series of questions that are related to the sale of the rental that will help you determine this.

Here are several articles to help with your situation.

https://turbotax.intuit.com/tax-tips/rental-property/real-estate-tax-and-rental-property/L3e09vT71

https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals

https://turbotax.intuit.com/tax-tips/home-ownership/tax-law-for-selling-real-estate/L9PmDNkK5