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kuhnkarl
New Member

I have sold my house that was rented out for 10 years but I originally moved out due to military orders. How long do I still have capital gains exclusion?

During the 10 years of rental property use, I was on active duty for 3 years and have been retired from the military the last 7 years.  Does TurboTax recognize that I should still have a tax free gain?
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2 Replies

I have sold my house that was rented out for 10 years but I originally moved out due to military orders. How long do I still have capital gains exclusion?

Since you are no longer active duty and have not lived in the home for at least two years during the 5 years before the sale of the residence you are not eligible for the capital gain exclusion.

I have sold my house that was rented out for 10 years but I originally moved out due to military orders. How long do I still have capital gains exclusion?

You can suspend the 5 year rule for up to 10 years while you are on qualified extended duty.  Your suspension period ended when you retired in 2015.  If you sold before 2018, you could have used the 5 year rule to exclude part of your gain (counting 2 years before active duty that you lived in the home, and the 3 years after, as your 5 years, and ignoring the period of suspension).

 

You waited too long, and you no longer qualify for any capital gains exclusion. 

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