Need help with tax implications of sale

1 Reply

Looking to sell a house this Fall. Bought in 2010 as primary residence. Lived in it for 27 months. Moved out in late 2012 due to military transfer. Started renting it out. I made assumption that it would always be a rental and started accounting as such. I deducted all expenses and started to depreciate. There is an exception for military that extends the 5-year window to 10 years for exempting from capital gains. Can I still qualify for that since I took depreciation and expense deductions the last three years? Also, which basis do I have to use? The depreciable basis when I converted it to a rental in 2012 was much lower that what I originally paid. I know I need to ask an accountant, but would like some insight from the BP crowd first.

I am interested in this as well. Our rental property was bought as our first primsry, but we only lived in it for about 15 months. I took the depreciation last year for the first year we rented, but am now second guessing whether I should continue? Can I stop now after I took it last year? I've pretty much decided we would have to move back in for another year if we wanted to sell it so we are planning to keep it as a rental.

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