Rental Property Investor · Danville, PA · Member since 2018 · 25 posts · 12 votes
I am currently doing a rent to own in my primary residence, and I’ve been living here for the last 3 years. I will officially own the house within the next year and plan to sell it; will the profits be taxable? I see people referring to living in a house for at least two years so the profit is not taxable, but would this not apply to me since I’m doing a rent to own?? I’m located in PA.
Investor · Wasilla, AK · Member since 2016 · 277 posts · 139 votes
8y
To the best of my knolwledge, the clock starts ticking when you take title to the property. If I understand your post correctly, no, paying rent even with a sales contract in place does not make it your property as far as Unlce Sam sees it. Call up any CPA to confirm that though.