http://www.ramsey-rentals.com/how-to-avoid-rental-property-sale-tax/ Mon, 03 May 2010 08:40:34 +0000 hourly 1 http://wordpress.org/?v=3.0.4 http://www.ramsey-rentals.com/how-to-avoid-rental-property-sale-tax/comment-page-1/#comment-851 travelguruette Wed, 03 Mar 2010 04:08:35 +0000 http://www.ramsey-rentals.com/how-to-avoid-rental-property-sale-tax/#comment-851 If you depreciate the property as a rental then when you convert back to a primary residence you have to add back all the depreciation. You must live in it for 2 of the last 5 years. You definitely need to see a tax planner for that. If you depreciate the property as a leasing then when you convert back to a primary residence you have to add back all the depreciation. You must live in it for 2 of the last 5 years. You certainly need to see a tax planner for that.

]]> http://www.ramsey-rentals.com/how-to-avoid-rental-property-sale-tax/comment-page-1/#comment-850 Jack N Wed, 03 Mar 2010 03:38:45 +0000 http://www.ramsey-rentals.com/how-to-avoid-rental-property-sale-tax/#comment-850 It'l only carry capital gains tax for the time it was a rental property, not the time as a personal residence. It’l only carry capital gains tax for the time it was a leasing property, not the time as a personal residence.

]]> http://www.ramsey-rentals.com/how-to-avoid-rental-property-sale-tax/comment-page-1/#comment-849 PepsiLime Wed, 03 Mar 2010 03:29:12 +0000 http://www.ramsey-rentals.com/how-to-avoid-rental-property-sale-tax/#comment-849 Nope, you can't avoid tax even by converting it back into your primary residence. You'll have to pay tax on the depreciation that you would have taken while the property was a rental. That you can't avoid. As far as the primary residence rule goes, you can avoid tax on gain up to $250,000 if single, and $500,000 if married, if you have owned and lived in the home for 2 out of the previous 5 years. But even that rule doesn't exclude the gain on depreciation recapture. Nope, you can’t avoid tax even by converting it back into your primary residence. You’ll have to pay tax on the depreciation that you would have taken even as the property was a leasing. That you can’t avoid. As far as the primary residence rule goes, you can avoid tax on gain up to $250,000 if single, and $500,000 if married, if you have owned and lived in the home for 2 out of the previous 5 years. But even that rule doesn’t exclude the gain on depreciation recapture.

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