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sale of personal residence after renting it out for 5 yrs

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    sale of personal residence after renting it out for 5 yrs

    I have a client who lived in personal residence, from 1982 till 2010, then rented out till 2014. does he have to claim total sale of property as rental sale & lose 250k exemption. I read where if he rented it out more than 3 yrs he has to claim the whole sale. Can anyone direct me to irs pub on this. he rented it out for 4 yrs. Any help is greatly appreciated.

    thanks rick

    #2
    No 250k

    Your client did not live in the house for 2 out of the 5 years prior to the sale. Therefore no 250k exemption. He may have lived in it for a part of one year out of the 5 years prior to the sale depending upon the exact dates involved. In this case, he may meet one of the exceptions for a partial exclusion.

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      #3
      Is the property already sold? If yes the options are limited!
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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