Sale of military rental

[jksfam]

Bought a home in Virginia in June 2014.  Lived in it with my family until we were transferred out of Virginia in June 2017 on military orders.  Rented the home until June 2021 when tenants moved out.  Sold home in Oct 2021.

Can I click yes on the question "Did you live in the home you sold for at least two years (24 months) since October 2016?" due to military tax rules?

Also, am I correct in answering "No" to the question, "Did you use this home for anything other than your primary home?" since the use of the home as a rental was after it was no longer my primary home?

Finally, am I correct in including repairs that were completed after tenants departed but before home was sold (e.g. new roof in July 2021) as "repairs" under rental property expenses?

[ColeenD3]

Yes, you can claim the two-year exclusion.

Since PCS moves are a normal part of military life, IRS Publication 523 contains a specific clause for military personnel, referred to in IRS Publication 523 as “stop the clock.” What this means is that you can suspend the two-year requirement for up to 10 years if you are on qualified active duty & ordered to move at least 50 miles you’re your residence. When combined with the 5 year test period, this can be a total of 15 years.

  Keep in mind, this only applies if you meet the criteria for ‘qualified extended duty.’  If you end up moving back within 50 miles of the house or are no longer on active duty, this clause is no longer in effect.

The repairs after the renter moved out are not deductible. They are not an expense of the rental.

From IRS Pub 527: Vacant rental property.   If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant.