Taxpayer has 2 homes. One is rental the other was personal. Personal sold and taxpayer moved into the home he had rented out. Taxpayer is considering builing new home and selling the other that had been rental. As long as taxpayer has been in the second(rental) at least 2 years, he would pay no tax on sale as long as it is under 500,000.00. (married)
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Except to the extent of depreciation
I would agree. The Section 1250 gain is still taxable.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
New law for 2009
There is a new law relevant to this type o f sale. You need to provide more info:
Date first residence was sold
Date stopped renting
Date moved into the rental
Date rental will be sold, approximateComment
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Ostensibly the first residence has been sold. Consequently, since the client moved into the rental before 2009, non-qualified use will not apply.Last edited by solomon; 10-14-2008, 01:03 PM.Comment
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