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Returning Member
posted Feb 7, 2019 8:50:25 AM

Capital gain on sale of property

I bought the house in 2013 and had lived there to July 2017. I rented out from Sep 2017 to August 2018 through a property management company. Now I am selling it in Feb 2019. Can I get the capital gain tax benefit? I was told I am not qualified for it because it was managed by a property management company for one year.

 

Thank you

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1 Best answer
Level 15
Feb 7, 2019 1:23:55 PM

to be your personal residence and qualify for the capital gains exclusion , you must have lived in that home as your primary residence for any 24 of the last 60 months.  The specifics are in the link below 

 

https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6tbMe3Dy

 

4 Replies
Level 15
Feb 7, 2019 1:23:55 PM

to be your personal residence and qualify for the capital gains exclusion , you must have lived in that home as your primary residence for any 24 of the last 60 months.  The specifics are in the link below 

 

https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6tbMe3Dy

 

Returning Member
Feb 7, 2019 1:39:50 PM

Hi, NCperson:

Thank you for replying my question. What you told me was what I thought that I could get the capital gains exclusion since I had lived there for 4 years before I rented out for one year from Aug 2017 to Sept 2018. But my accountant told me since the house was managed by a property management, I am not qualified for the capital gains exclusion. I just wondered if he gave me the wrong information. I would like to figure it. I might have to find another accountant for my tax return if what he said was wrong. I would appreciate if you can clarify it with me. Thank you.

 

 

Level 15
Feb 7, 2019 1:42:58 PM

i would suggest showing your accountant the link I provided and ask him to document from the IRS where it states that your capital gain exclusion is invalidated by using a property mgmt firm ;  if he can't prove it from the IRS (i.e. don't take his word for it) , suggest seeking advise elsewhere, 

Returning Member
Feb 7, 2019 1:48:45 PM

Thank you very much.