You needed to sell before Jan 2025 to benefit from this rule.Right now, you owe capital gain taxes, unless you do a 1031 exchange or implement some other tax deferral strategy. 

For me, every underwriting spreadsheet I found was never exactly what I needed.I’m curious to hear your thoughts Here lies the problem: every underwriting spreadsheet I FOUND was never exactly what I needed.You are essentially starting a business and investing tens of thousands of dollars - I still cannot understand why people don't MAKE their own spreadsheets.

The beneficiary would be your family, I.e a child or whoever the trust is essentially for at the end of day, and the trustee yourself.  

LTR's are usually the most predictable way to build wealth over time because of all the different variable benefits.

My wife and I absolutely love Hawaii (although we are from GA (-: ) and think that -- now that Oahu, Maui, and Kauai are essentially maxed out or unaffordable for the vast majority -- people will be flocking to the Big Island in the near and distant future.

Investors need to pair a strong location with renovations that elevate the guest experience—high-end kitchens, spa-like bathrooms, and curated interior design are now essential.

@Clinton Springer,Great question, and great replies so far.Since you lived in the home from 2017 to 2023, you do still qualify for the Section 121 home sale exclusion, as long as you sell before March 2026, you could exclude up to $500,000 of gain if you’re married filing jointly, or $250,000 if single.Like others have said above there’s no specific “penalty” in Oregon for renting it out too long other than missing out on the home sale exclusion, and like Dave mentioned you will owe tax on two things: depreciation recapture, which is essentially paying back tax on the depreciation you took (or could have taken) while it was a rental, and capital gains over the exclusion.You might look into doing a 1031 exchange, like Dave mentioned, or even an installment sale, which lets you spread the gain (and taxes) over several years instead of paying it all at once.

They get to essentially receive $100 today, and only have to pay back $14.67. 

Very clear why they did this based on essentially the SCOTUS decision and the opinion that guidances should not replace the courts.

I help veterans maximize their VA loan benefit to start their real estate investing journey.There is a lot of great information and people on the site.Please let me know if I can help in any way.I wish you all the best!