Rental of personal home

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  • JenMO
    Senior Member
    • Apr 2007
    • 974

    #1

    Rental of personal home

    New client has moved to town, had a CPA previously do his taxes. He couldn't sell his home, so has rented it. He said his CPA told him that he didn't have to report the rent for 3 years while he's trying to sell it. Have I missed something? Could he possibly misunderstood? I told him he would have to report, but could still take the home tax break if he sold in 3 years. (excluding the depreciation taken on the rental) Am I right?
  • solomon
    Senior Member
    • Aug 2006
    • 1012

    #2
    I vote for you.

    Comment

    • JenMO
      Senior Member
      • Apr 2007
      • 974

      #3
      Thanks, don't think I want to get into politics. A CPA (as you can tell I'm not one) wouldn't say that, would he? Could it have been a beautician or friend CPA?

      Comment

      • DaveO
        Senior Member
        • Dec 2005
        • 1453

        #4
        I wouldn't put too much stock in the "A CPA told me" line. I'm constantly explaining the difference between an EA (which I am) and a CPA (which I'm not). Even people who have been with me for years will refer to me as "their CPA".
        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

        Comment

        • KBTS
          Senior Member
          • Nov 2005
          • 564

          #5
          Quite possibly they only heard what they wanted to hear from the CPA. I do know a local CPA however that is notorious for advice like that. How he still has his license is a mystery to many.

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