I bought a primary home in January 2012 and lived in it until August 2015. It has been a rental since August 2015.
If I put on the market and closed in August 2019, it would have been a primary residence for 3 years 7 months and a rental for 4 years and 0 months.
I paid 95K, 4K of closing costs and 16K of repairs, so I'm all in at 115K.
If I sold for 245K, I would pay another 15K in realtor fees and closing costs. Over the past 4 years, I claimed around 10K of depreciation, so I calculated my total profit at 125K.
Would I pay 15% capital gains on the entire 125K? Or, do I get some sort of pro-rated capital gains because the property was my primary residence for 3 years and 7 months, which is roughly 47% of my total ownership period (7 years and 7 months).