For tax purposes, how to I account for the conversion of my 2 family house into condos if I sell both?

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For tax purposes, how to I account for the conversion of my 2 family house into condos if I sell both?

I lived in one. The other was a rental that sat empty for 2006.

2007-03-14 07:10:59 · 3 answers · asked by chinanski 1 in Business & Finance ➔ Taxes ➔ United States

3 answers

You have two separate transactions.

1) The one you lived in: If you lived in the condo for 2 of the past 5 years, and gain up to $250k ($500k if married) would be tax free.

2) The Rental: You will have to pay Capital gains tax on the profit of this sale plus taxes on the depreciation recapture.

2007-03-14 07:22:11 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋

Call the IRS 1-800-452-1040

2007-03-14 14:13:51 · answer #2 · answered by ljpeterson1956 3 · 0⤊ 2⤋

1031 exchange.

2007-03-14 14:13:36 · answer #3 · answered by csucdartgirl 7 · 0⤊ 2⤋