I bought a home in 2003 and it was my prime residence until 2012. Since then I have rented it out. If I sell, do I have to pay capital gains?

(0) | asked by: Heather Darden | share | 13 months ago | Report
2500 characters left
Answer Tips: Share your knowledge. Be on-topic . Refrain from self-promotion.
* Refer to our community guidelines.

Answers

Viewing Answers 1 - 5 of 5
answer by Georgina Franklin    |   Contact Me
2 of the last 5 years is correct.
0
0
Answer Helpful?
13 months ago  |   Report   |   share
answer by Dirk Knudsen    |   Contact Me
2 of the last 5. I am guessing you might be wanting to sell in this up market? Things are so hot and we may be peaking again- signs point to that. So - make more now and pay taxes- or move in and wait two years and miss a hot market. Tough choice. Ultimately there are other ways to approach this - If you want to spend 5 minutes on the phone I am quite certain I can enlighten you as to more options - there may be a have your cake and eat it too scenario. I am easy to reach - 503-799-8383. Best Wishes! Dirk
0
0
Answer Helpful?
13 months ago  |   Report   |   share
answer by Natasha Ochs    |   Visit My Website   |   Contact Me
You must live in the home 2 years of the last 5 years in order to exclude the gain on the sale of the property. So from the date of rental in 2012, count 3 years. To avoid capital gains tax on the sale, you would have needed to sell the property in 2015 or you could move back into the property for 2 years and then sell it. Regardless, you would have to recapture the depreciation. Best thing to do is figure out about how much your property would sell for and then have your tax preparer run the numbers for your situation and see how much tax that would be for you.
0
0
Answer Helpful?
13 months ago  |   Report   |   share
answer by Tami Parks    |   Contact Me
You should contact your accountant, but my understanding is that the rules state that you must live in the property for 2 out of the last 5 years. It does not need to be consecutively, though; it could be 6 months at a time, but must add up to 2 years in the last 5 before you sell.
0
0
Answer Helpful?
13 months ago  |   Report   |   share
answer by Tom Inglesby    |   Visit My Website   |   Contact Me
Yes you must live in it the past 2 out of 5 years. Good luck.
0
2
Answer Helpful?
13 months ago  |   Report   |   share
Please read Homes.com's Questions & Answers Community Guidelines.