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Level 6
December 16, 2021

Home Sale Exclusion on rented property

  • December 16, 2021
  • 1 reply
  • 10 views

Hello, A client lived in the property for 3 out of the last 5 years and the property was rented the last 2 years before selling. She claims she was told by another accountant that the gain will be taxable. Is that correct? The tests to exclude the gain are all met. I believe the only taxable amount will be depreciation recapture?

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1 reply

IRonMaN
Level 15
December 16, 2021

If clients knew everything, they wouldn't need us.  Usually most of their information comes from their barber.  Maybe that other accountant is a barber moonlighting as an accountant.

Slava Ukraini!
ptax255Author
Level 6
December 16, 2021

Probably, thanks for confirming.

IRonMaN
Level 15
December 16, 2021

You betcha!

Slava Ukraini!