Sold home

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Bought a home in 1990 and it has been a rental property till May 2018 so it was 100% depreciated in the amount of 65k. Moved in right after in May 2018 as a primary residence then sold it last year in May with just 100k capital gain after all the sales expense + home improvement costs. I will report this home sale to pay the depreciation recapture tax but wondering can I be exempt from the 100k capital gain taxes since it has been my primary residence for more than 2 years and I haven't sold a home in 2 years?

Thank you!

RobertB4444Answer

Alumni - Intuit

It was your primary residence for three years. As @JulieS says the only thing you have to worry about is the depreciation recapture.

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JulieS

Alumni - Intuit

Yes, you can exclude up to $250,000 of capital gain from your income as long you lived in the house for at least 24 months during the five years prior to the sale.

You have to recapture the depreciation that was taken as ordinary income. It sounds like you have a clear understanding of this subject.

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frank425Author

Level 2

What about something about qualified vs nonqualified use of the property to the portion of the capital gain exemption since it was a rental for 28 years out of the 31 years?

Thank you!