how to avoid rental property sale tax?
Saturday, May 22nd, 2010 at
8:17 pm
I have a rental property which was converted from my primary residence. I plan to rent it out for a long time. So by the time that I want to sell it (probably many years later), can I move back to the house to converted it back to primary residence to avoid the tax? can I just leave it empty (noy move in it) for 2 years to avoid the tax?
Quick Property Sale
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Tagged with: Property Sale • Property Tax • Rent • Rental Property
Filed under: rent property
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.
It' l draagt slechts vermogensbelasting voor de tijd het een huurbezit, niet de tijd als persoonlijke woonplaats was.
Si usted desprecia la característica como alquiler entonces cuando usted convierte de nuevo a una residencia primaria usted tiene que agregar detrás toda la depreciación. Usted debe vivir en ella para 2 de los 5 años pasados. Usted necesita definitivamente ver a un planificador del impuesto para ése.