Skip to main content
No. of Recommendations: 0
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.


cross posted on tax strategies board:
Print the post  


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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.