All Forum Posts by: Raja Carmi

Facts:

1. Condo 1, titled in my name, bought in September 2013. Been living in this condo since (almost 6 years).

2. Condo 2, titled in wife's name, bought in September 2015 and sold in May 2019. Wife lived in the condo from September 2015 through October 2017. Condo was rented out from January 2018 to March 2019.

3. Wife and I got married in October 2017.

When we file our joint tax return (tax year 2019) in Q1 2020, we will not be paying capital gains taxes on the sale of condo 2 due to the 2 out of 5 year rule.

Question:

I am considering selling condo 1. Is there any way I can sell it this year or next without paying capital gain taxes or do I have to wait until at least May 2021?

Any guidance is much appreciated.

Thanks.

Thank you Ashish. Fair point on the 250K. 

Can you please explain your comment on "The part of the gain will be taxed at ‘max 25% as depreciation recapture due to rental activity"? We will only have depreciation for tax year 2018. 

Dear community,

My wife bought a condo in September of 2015 and lived in it until October of 2017 (a little over 2 years). She moved in with me in October and rented out the condo starting January 27th, 2018. The lease expires on May 17th, 2019 and we are considering selling it by July 1st, 2019.

1. Would we be able to exclude the entire gain on the home given that she lived in the property for 2 years (~25 months) out of 4 years (~46 months)? 

2. Is there any reason, from a tax standpoint, to hold the property and rent it out for another year? 

Thanks,

RRC