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Updated almost 6 years ago on .
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House Hack Tax Question
Hey all!
I purchased a duplex in May of 2015. I lived in one unit and rented out the other unit until Aug of 2018.
I plan to sell the property within the next 2 months and should likely met $50k-$70k due to appreciation in the area.
As I have lived in one unit for 2 of the last 5 years as a primary residence, am I exempt from taxes on the gain?
My CPA said I would owe a prorated amount due to only occupying one unit.
Hoping for some additional input! Thank you!!
-Tommy
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
Your CPA is correct. You essentially owned two properties for tax purposes: a personal residence and a rental property. The former can be exempt from taxes, but you do owe taxes on the rental portion.