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We purchased a primary residence in July 2017, moving to a new place August 2017 and putting it on the rental market. We are trying to figure out the tax impact of selling the property this Spring. I would appreciate some help with the details and a check on my assumptions.

1. Because it was our primary residence for 2 out of the past 5 years, selling it before August of 2022 should result in our being taxed on roughly 3/5 of the net capital gains, depending on when it actually closes.

2. Because our income was too high to benefit from a net loss on a passive investment, we have had a tax benefit for only a very small portion of the depreciation, which was still reported on our schedule E. How do we handle the depreciation that was reported but no benefit received? Does the full depreciation get recaptured at ordinary income rates, or just the amount we were able to write off? How does this depreciation issue impact how we calculate net profit?

I will be pressing DH to get a CPA to do our returns for when we sell, but I need to understand this info to decide if to sell.

TIA,

IP
cross posted on tax strategies board: https://boards.fool.com/tax-impact-of-selling-a-rental-35007...
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