Do we owe capital gains? I disagree with my cpa. advice needed, thanks!

[Shay Kent]

We lived in our primary home for 3 of the last 5 years. We rented it out for a year and then sold it. Do we owe capitals gains on it?

Our CPA says that as soon as we rented it out it became a business and we have to pay business tax plus the percentage of the time used as a rental (12% of the time). I think this sounds wrong. Any help would be fantastic. Thank you!

Shay

[Ashish Acharya]

Quote from @Shay Kent:

We lived in our primary home for 3 of the last 5 years. We rented it out for a year and then sold it. Do we owe capitals gains on it?

Our CPA says that as soon as we rented it out it became a business and we have to pay business tax plus the percentage of the time used as a rental (12% of the time). I think this sounds wrong. Any help would be fantastic. Thank you!

Shay

 You don't owe anything other than depreciation recapture. Time for a new CPA.