Non-qualified use tax on primary residence
Hi all,
I'm looking into the tax implication of selling my current primary residence, which I used as a rental during a 4 year stint my employer sent me abroad. I'm interested to learn if there is any exceptions to the non-qualified use period or if the only option is a 1031. Here are some of the details.
Purchased: May 2010 @ 325k
Primary residence: May 2010 - July 2013
Rental: July 2013 - July 2017 (Period my employer sent me abroad)
Primary residence: Aug 2017 - Aug 2019 (targeting to sale Aug 2019 to qualify for the 2 out of last 5 year capital gains exclusion)
Estimate sale price: $675k
Profit: $350k
Must I count the 4 years my employer sent me abroad and I rented the property as non-qualified use?
If my math is right this would amount to ~44% or ~23k in capital gains tax @ 15%.
For completeness, I'm also aware I must recapture the depreciation @ 25%.
Thanks in advance.