Primary Residence that was rented for a year
Hello RE community,
I had a question regarding the sale of my property. I lived in my primary residence but then welcomed a child last year so we rented it. It has been a year since the apartment was rented. I am planning to sell it and was wondering if I can still treat it as a primary residence (even though it was rented for a year) or will I need to do a 1031 exchange?
Any help would be appreciated. The apt is in Manhattan, NY
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Raza Rizvi, @Josh Mitchell is correct. If you have lived in that property for 2 out of the last 5 years then you may sell and take the first $500K in profit tax free since you're married. You could actually continue to rent that property for another 2 years and still take that exemption as long as you can still document that you have lived in it for two of the previous 5.
You do not need to 1031 it. However you will need to recapture depreciation during the time it was in service.
- Dave Foster
