[quote=bearishgurl]
Of course, the OP would have to tell us, but I think his situation meets the exception described above. From my memory of his prior posts, I don’t think his rental house has been in service very long (1-2 years??). Before renting it out, it was his principal residence.
If I’m reading this paragraph right, the OP won’t have to pay capital gains on any portion of proceeds he nets from sale because his rental house hasn’t been in service long enough.
Is this your understanding of this exception?
paramount, how long has it been since you moved into your new primary residence and how long have tenants occupied your old house (if the answer to the 2nd question makes a difference)?
[/quote]
It will be 2 years in July since the house was placed on the market as a rental, my problem down the road is that I have taken the depreciation on my taxes as a deduction.
