Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Because there are so many forms and schedules that have to do with the sale of real estate, I'm confused as to the best tax advantage in my situation.

During the next two years, I have the opportunity to sell one of my homes as either a second home, or as rental property. My basic question is: which way will provide the best tax advantage? Currently the home qualifies as a second home as my mother-in-law is living there rent free and has for the past two years. Previously the property was listed as rental property for two years. My mother-in-law is moving out of the house and I would like to sell the house within the next two years.

Is it best to sell now while the house is considered my second home, or rent it for two more years and sell it as rental property. I'm familiar with Schedule D which I assume I would use for sale of a second home, but not familiar with Form 4797, used for sale of rental property.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.