Once you pass that point, it’ll have been more than three years since you lived there, and you’ll no longer qualify for the exclusion.If you sell before March 2026, you can likely exclude up to $250k/$500k of gain from federal taxes.

Selling one property to add a liquid, taxable account for college/retirement flexibility is a totally rational move — especially with kids about to hit college and you wanting to retire in 10–14 years.One thing to double-check:Since the sale is 11/24/25, make sure the tax estimates line up (federal, Colorado, NIIT if it applies, depreciation recapture).

Picture this: Elderly parents own the family home but have unpaid IRS debt with a federal tax lien filed.

🚨 What You Didn't Know About Federal Tax Liens Could Kill Your Real Estate DealThink that NFTL showing up in your title search means "game over"?

"→ Day 3,649: WHAM - IRS files federal lawsuitSuddenly your brilliant executor strategy becomes a catastrophe.

When the property is sold, the depreciation recapture rules will apply, reducing your tax basis and potentially increasing your taxable gain. 

Your taxable gain would be the sale price ($250K) minus your adjusted basis (purchase price $200K + $10K improvements = $210K), so $40K is correct.

That means you’re likely paying self-employment tax on top of federal and possibly state income taxes.

A disregarded entity means that the entity does not file a Federal tax return. 

When the property is sold, the depreciation recapture rules will apply, reducing your tax basis and potentially increasing your taxable gain.This sounds like it is straight out of chat gpt and does not answer my question. 🤣  Completely agree