2006-12-11 09:48:12 · 3 answers · asked by emily051405 2 in Business & Finance ➔ Taxes ➔ United States
Not only do you have a capital gain, but you also have the issue of depreciation recapture. As you only rented the property for one year, this should not be too significant though. Have you sold it yet? If not, follow the advice of the previous poster.
2006-12-11 10:20:19 · answer #1 · answered by skip 6 · 3⤊ 0⤋
To avoid capital gains taxes, you need to have lived in the house for 2 of the previous 5 years before the sale. Many people move back into their rental property for two years, for this purpose.
2006-12-11 09:56:01 · answer #2 · answered by Anonymous · 2⤊ 0⤋
If you sold the house and had capital gains, then you need to claim those gains. If you still have it as a rental, you simply fill your taxes out listing it as a rental property, expenses income etc.
You must consider the house your primary residence for 2 of 5 years (I think it's at least 2) to not fall under capital gains.
2006-12-11 09:53:21 · answer #3 · answered by Jen 5 · 2⤊ 0⤋