The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: EngineerYogi on February 07, 2017, 08:56:17 AM

Title: Personal Home Converted to Rental then Sold
Post by: EngineerYogi on February 07, 2017, 08:56:17 AM
I had a personal home that my husband and I lived in for 7 years, we then moved and were unable to sell it so we began renting it out. We had tenants from July 2014 to July 2015. The tenants moved out and we were unable to find new tenants willing to pay the same rent(though we had a couple offers to pay $150 less than what we were asking which would have been a loss for us), in December 2015 we decided to list the house for sale. It sold in November 2016. Because I essentially stopped renting it in order to sell it will this sale (which was for a loss) need to be filed under personal or business on my taxes? We never moved back into the home, it just sat empty while for sale.
Title: Re: Personal Home Converted to Rental then Sold
Post by: NoNonsenseLandlord on February 09, 2017, 05:57:52 AM
If yo lived there two of the past 5 years, you have a capital gains exclusion.  You will also have to recapture depreciation.
Title: Re: Personal Home Converted to Rental then Sold
Post by: EngineerYogi on February 09, 2017, 08:30:27 AM
Thank you! I got it all sorted out and it looks like TurboTax handled it correctly. I did have two years of depreciation which I recaptured, I still had a loss so no additional tax burden.