I live in my current hosue more than 2 years. If I convert my house to rental property and sell it within 3 years, do I have to pay some capital gain?
If you sell house a house and keep the equity, it will be taxed. You could do a 1031 Exchange where you sell one investment and then use the proceeds to purchase another investment. 1031 Exchange funds will not be taxed because it remains an investment.
Originally posted by @Wayne Brooks :
@Nathan G. You missed that he’ll get the 121 exclusion.
Typing before coffee comes with risk. :)
Yes, if he owned the home as his primary residence for two of the last five years, then he could be eligible for a 121 exclusion up to $500,000.