Tax payer sold former residence within 3 years so they got exclusion. They did rent it out for 2 years. Am I right that the only gain they report is on 1250 recap? Thanks for your comments.
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1250 Recap
Yup. That is correct.I would put a favorite quote in here, but it would get me banned from the board. -
Resident
Are you saying they own the residence for 5 years or 3 years?Tax payer sold former residence within 3 years so they got exclusion. They did rent it out for 2 years. Am I right that the only gain they report is on 1250 recap? Thanks for your commentsComment
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total gain
Was the total gain less than the exclusion amount?Comment
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Thanks for your reponses,
They lived in it for over 20 years, they sold it with in 3 years of moving to new residence, and rented for about 2 years until sold.
Yes the total gain ($100,000) was less than the exclusion.
Thanks for your commentsComment
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then recapture
Recapture the depr and pay tax on that only.I would put a favorite quote in here, but it would get me banned from the board.Comment
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