Updated almost 6 years ago on .
Most recent reply
presented by
2 of the last 5 rule if I didn’t own initially?
Okay so I am considering buying my house from my dad and renting out the extra bedrooms when he moves out. I have lived with him for the last 3 years.
But if he sells to me and then hypothetically someone comes to me and offers me a large amount above what I bought it for: hypothetically say I buy for $225k and 3 months later someone offers me $300k
Do I have to pay taxes on that even though I’ve lived in the house for two of the last 5? Or is it 2 of the last 5 since I took personal ownership?
Most Popular Reply
#5 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- Atlanta, GA
- 1,765
- Votes |
- 1,982
- Posts
#5 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- Atlanta, GA
Owned and used for the last 2 out of 5 years.
Note the owned and used years don't have to be concurrent.