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I am a single man, and just moved out of my house last June 15, and am renting it out, before that I had been there over 10 years. I was going to sell it but decided to hold on a little longer because I think property values here in Calif. will be a bit higher in two years.Am I correct that if I sell it within two years I don't have to pay taxes on upto $250,000 of increased value? If this is the case when should I put it on the market?I hope I am posting this on the right board,it's the only one I saw on homes.

I can help with the tax part of your question. You're correct that you can exclude up to $250k of gain on the sale of your personal residence. You have a little more time than you think, however. To exclude the gain, you need to own and live in your home for only 2 out of the previous 5 years before selling. So you really have three years from the time you move out to sell it.

One other thing to consider. Since you are renting the house, you will be able to take depreciation on the house while you rent it. That depreciation will be recaptured when you sell and is not excludable. Just one thing to watch out for.

There's also a Tax Strategies board that could be helpful. You might get more tax-oriented responses there.

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