Just starting out and looking for CPA help us decide whether to sell our current home

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Just starting out and looking for CPA help us decide whether to sell our current home

Harold Penovich
Member since 2026 · 7 posts · 2 votes

Just starting out and looking for CPA help us decide whether to sell our current home

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  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    2d

    Is your home a primary residence? 

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  • Harold Penovich
    OP
    Member since 2026 · 7 posts · 2 votes
    2d

    yes. primary residence and we are trying to decide if we should sell it or turn into rental when we buy our next home in 6 months

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  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    1d

    @Harold Penovich  if you've lived in the property for two of the previous five years, you could take the first $250k ($500k if married) of the gain tax-free with the primary residence exclusion. This would be the best tax break if you qualify.

    If you decide to convert and rent out the property, you would still have exactly three years to take advantage of the exclusion if you choose to sell within that time. 

    I would look into your local rental market to see what you could rent the property for. You're not in a position of urgency and don't have to make a decision today, so weigh out your options and see if the numbers make sense. If your property did perform well as an investment and you pass on the exclusion, you could always do a 1031 exchange if you wanted to sell in the future. A 1031 allows you to defer all of the tax and reinvest it into another investment property/properties in any state. 

    There are a few ideas you can explore. Good luck! 

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    • Harold Penovich
      OP
      Member since 2026 · 7 posts · 2 votes
      1d

      Thank you Dave. I appreciate the information. We have lived in the home since we had it built 8 years ago. I think that is the route we are going to take is rent it for a one year lease and evaluate near the end of the first year. Makes a lot of sense.

      Thank you

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