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lisa9
New Member

I purchased a condo in 2009 for 129K as my primary resident. Sold it in 2017 for 187K. I've had renters since 2013. Am I required to report capital gains?

Property was bought with a person whom I was never married too. All proceeds received by me. 

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Hal_Al
Level 15

I purchased a condo in 2009 for 129K as my primary resident. Sold it in 2017 for 187K. I've had renters since 2013. Am I required to report capital gains?

Yes. To qualify for the home sale exclusion, you needed to sell the condo within 3 years of moving out (you must have lived in the home at least 2 years of the 5 years prior to sale). 

Job relocation is an exception to the 2 year rule. Your new job location must be at least 50 miles farther from the sold home than the old job location. You are entitled to a prorated amount of the $250,000 ($500,000 married) exclusion. Example : if you lived in the old home 438 days you could exclude up to 60% {438/(365x2)} or $150,000.  The exception is allowed if the move was for employment or health reasons or "unforeseen circumstances". 

http://www.nolo.com/legal-encyclopedia/the-partial-home-sale-tax-exclusion-irs-approved-unforeseen-c...

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4 Replies
Hal_Al
Level 15

I purchased a condo in 2009 for 129K as my primary resident. Sold it in 2017 for 187K. I've had renters since 2013. Am I required to report capital gains?

Yes. To qualify for the home sale exclusion, you needed to sell the condo within 3 years of moving out (you must have lived in the home at least 2 years of the 5 years prior to sale). 

Job relocation is an exception to the 2 year rule. Your new job location must be at least 50 miles farther from the sold home than the old job location. You are entitled to a prorated amount of the $250,000 ($500,000 married) exclusion. Example : if you lived in the old home 438 days you could exclude up to 60% {438/(365x2)} or $150,000.  The exception is allowed if the move was for employment or health reasons or "unforeseen circumstances". 

http://www.nolo.com/legal-encyclopedia/the-partial-home-sale-tax-exclusion-irs-approved-unforeseen-c...

lisa9
New Member

I purchased a condo in 2009 for 129K as my primary resident. Sold it in 2017 for 187K. I've had renters since 2013. Am I required to report capital gains?

Thank you. I am thinking of buying a new home How much should I set aside though in taxes for the gain?
Zbucklyo
Level 9

I purchased a condo in 2009 for 129K as my primary resident. Sold it in 2017 for 187K. I've had renters since 2013. Am I required to report capital gains?

Not enough information to tell.  However, your taxable gain will be 187K - 129K + Capital Improvements - Depreciation Taken or Required to Have Been Taken.  Depreciation will be taxed at a maximum of 25%; Capital Gains Tax Rate will depend on your other income.  I suggest you consult a tax professional if you are unsure about how the taxation will work.
SweetieJean
Level 15

I purchased a condo in 2009 for 129K as my primary resident. Sold it in 2017 for 187K. I've had renters since 2013. Am I required to report capital gains?

and remember State taxes as well.
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