Capital Gains Assistance - Please
I bought my asset (home) in 1998 for $245.000 lived in the home until 2011, it has been rented since to date 2020. The asset is now worth $896.000 . I plan to move back to the home for 2 years and then sell at the prevailing rate. I am aware of the depreciation recap , but how do I anticipate my capital gains. Advice thoughts greatly appreciated.
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Originally posted by @Jonathan Kris:I bought my asset (home) in 1998 for $245.000 lived in the home until 2011, it has been rented since to date 2020. The asset is now worth $896.000 . I plan to move back to the home for 2 years and then sell at the prevailing rate. I am aware of the depreciation recap , but how do I anticipate my capital gains. Advice thoughts greatly appreciated.
Years 12-20 are non-qualified use, so your gain have to be prorated between qualified and non-qualified use even before you apply the exemptions. Qualified gain can be excluded under section 121. The tax advisor needs to run your numbers.
Thank you