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I just sold one house, and gained about $20,000. Then I

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bought one house, which is...
I just sold one house, and gained about $20,000. Then I bought one house, which is really expensive. I am thinking about selling my rental house(which i lived more than 2 years before converted to rental). I am thinking that the combined profit would be 240,000. I will put that profit into the new house and refinance it.What about my tax? I am a single mother.
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: My annual income last year was over 100,000. Does it put into consideration for the tax calculation?
Submitted: 1 year ago.Category: Tax
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7/18/2016
Tax Professional: emc011075, Tax adviser replied 1 year ago
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3,231
Experience: IRS licensed Enrolled Agent and tax instructor
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Hi. My name is ***** ***** I will be happy to help you.

You can use up to 250K capital gains exclusion if you owned and used the property as your primary residence for at least 2 out of 5 years prior the sale. You can only apply the exclusion to one sale and only every two years. When did you converted the rental house from your primary residence to rental property?

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Tax Professional: emc011075, Tax adviser replied 1 year ago

Unfortunately you cannot avoid capital gains by reinvesting it into another property. This option had been replaced with the capital gains exclusion several years ago.

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Tax Professional: emc011075, Tax adviser replied 1 year ago

If you convert a property from personal to rental use, you have 3 years to sell the property and still qualify for the exclusion. How long have you been renting that house?

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Tax Professional: emc011075, Tax adviser replied 1 year ago

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

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Tax Professional: emc011075, Tax adviser replied 1 year ago

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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emc011075
emc011075, Tax adviser
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