Author Topic: Taxes for Primary residence temporarily being rented  (Read 670 times)


  • Handlebar Stache
  • *****
  • Posts: 1070
  • Location: Golden, CO
    • The Reckless Choice
Taxes for Primary residence temporarily being rented
« on: March 04, 2017, 04:14:04 PM »
I own a house. I lived in it for 3 years. While I have owned it, it has appreciated about $100k. We started renting it this year and probably will for another year.

So now I'm doing my taxes and as far as I know I have two options.
1. Don't depreciate the property on my taxes this year and then likely sell next year or the year after while it still counts as a primary residence (lived in for 2 of the last 5 years) and thus not pay the capital gains taxes.
2. Take depreciation now and then don't benefit from the primary residence benefit ever.

As far as I can tell I can't both use depreciation for 2-3 years and get the primary residence benefit when we sell but I would love to be proven wrong.

Anybody have any experience with renting a primary residence for a couple years before selling?


  • Walrus Stache
  • *******
  • Posts: 5148
Re: Taxes for Primary residence temporarily being rented
« Reply #1 on: March 04, 2017, 07:57:53 PM »
If you have a rental, the IRS will assume that you depreciate it. You can't choose to not depreciate. Well, you can, but it gives you no benefit.