Posted by Dave (mich) on July 16, 2001 at 06:07:41:
Robert, I’m not a attorney but my understaning is you will not have to pay capital gains since you lived in the house 2 out of 5 years.
tax on rental - Posted by robert , mi
Posted by robert , mi on July 15, 2001 at 23:09:41:
if i sell one of my rental units do i owe any tax on the gains.
i did live in it 2 out of the last 5 years. i heard that makes the gains tax free?
thanks
robert mi.
Re: tax on rental - Posted by Dave T
Posted by Dave T on July 17, 2001 at 17:58:49:
The capital gains exclusion is still intact if you sell before the end of the fifth year. If you rent the property for three years and one day, all your profits are treated as taxable income from the sale of investment property.
Of course, you will still have to contend with depreciation recapture. Consult your tax advisor for specific details.