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TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 15738
Experience:  15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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I own a home 5 years then took job many miles away.

Customer Question

I own a home for over 5 years then took job many miles away. So we rented the home for over 5 years paying some of the mortage ourselves. House was bought for $330,000 owewd $370,000 and sold for 425,000. How does capital gains figured on something like that?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  TaxRobin replied 1 year ago.
HelloYou will need to look at your gain. That is the difference in purchase (less depreciation plus improvements) and the sale price (less costs to sell).You can use the lower long term rates but because this was rental you will have to recapture the depreciation. This means you will be taxed on the amount you claimed for depreciation over the 5 years it was rental.