Capital gains on rental property sale

2 Replies

We are looking at selling our rental property.

The home was our primary for 10 years before moving to our current home 3 years ago. We decided to keep the house as a rental property but feel like its time to cash out.

Question is if we sell the home now will I have to pay capital gains or any other taxes?

Bought in 2007, lived in until 2017

Bought original: 134,900

Current valuation: 251,000

Owed: 68,000


@Tim Vaughan

Looks like you lived in it for two of the past five years. That should qualify you for the sec121 exclusion where married doesn't have to pay taxes on up to $500k of capital gains. Your cost basis lols like about $136k and if you sell at $235k you will be well below that threshold. You will have tax on the depreciation unrecapture (basically, you have to pay tax on the amount of depreciation you took/should have taken since it was a rental).

Work with a good accountant to hammer out the details. Good luck.