Start your membership account today...  Access to credit reports, 100's of rental specific forms, agreements, letters, checklists, how-to articles, guides, expert advice and much more!  Even a FREE, 3-day trial!

Not a Member?
Get a Free Trial Membership

  Get FREE Stuff! Run Credit Report Rental Forms  Shop & Buy Forms!  Advertise Your Rental Customer Care

Welcome to's Discussion Forum
Register Latest Topics

  Author   Comment  

Posts: 1
Reply with quote  #1 
I have a question regarding tax laws and the sale of properties.
Here's a little background.  I have lived in my home for about 3 years, and my last home was converted into the rental property 3 years ago, thus I lived in the now-rental property 2 out of the last 5 years.
A situation is coming up where I may sell both properties in 2014.  I expect to sell the current home at a small loss.  The rental property may end up with a small profit (largely due to depreciation taken in the past 3 years).  I understand that both properties individually qualify for the 250,000/500,000 capital gains tax deduction, but if I do end up selling both properties, I can only take the deduction on one of them because the sales will not be two years apart.
How will this scenario play out?  Hypothetically if I sell the home at a small loss in March and sell the rental property in April with a small gain, is it my choice to specifically apply the deduction to the sale of the rental property?
Are there other questions I should be asking myself but might not be aware of?
Thanks in advance for your help!

Posts: 178
Reply with quote  #2 
You will recapture the depreciation at a 25% federal tax rate.  Any appreciation in land or buildings you pay capital gains on the gain, which is off set buy the limitation.

Get an accountant.


Landlording for maximum profitability and Financial Independence

Previous Topic | Next Topic

Quick Navigation:

Easily create a Forum Website with Website Toolbox.

Apartment Finders > > Member Log-in > Free Trial Offer > Free E-newsletter > Customer Service > Get Free Stuff! > Run Credit Report > Rental Forms > Vacancy Center > Do-it-yourself > Evicting Your Tenant > Foreclosure Resources > Landlord Discussion Board > Income Tax Resources > Information Center > Join > Landlord Law > Library > Multi-family > Professional Advice > Rental & Property Mgmt > Rent Collection > Repair & Maintenance > Security Deposit > Software Center > Tenant Screening > Vacation Homes > What's New > Rental Agreements > Free Leases > Inside Our E-store > > Security Deposits > > Landlord Daily News > Rental Agreements > Resources: Cleaner Sunshine coast