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Question about capital gains.. I brought my property July

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2013 .. primary residence until...
Question about capital gains.. I brought my property July 2013 .. primary residence until 2015 Jan. Rented it through 2015 Jan until Jan 2017. I kept it vacant until i returned in May 2017. I thinking of selling will i have to pay capital gains I am 58 years old
Submitted: 5 months ago.Category: Tax
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6/23/2017
Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,985
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

Because you meet the conditions under IRC 121 (so far) to exclude gain (up to $250,000 if single and up to $500,000 if married filing joint) you would not have capital gain to pay unless you sell for more than the exclusion amount.
You must own and use the property as your main home for at least 2 years out of the 5 years just prior to the sell.

You still have 2 years in there that you did live there.
Te rental use though brings up depreciation recapture so you cannot use IRC 121 against that and you may have tax to pay for the recapture.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

Please let me know if you need more information.
If you do not then a positive 5 star rating is appreciated.

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Customer reply replied 5 months ago
if my profits from the sale of the property is less then 250 .000 no capital gains excluding the rental time and depreciation mortgage balance 320.000 sale price 465.00 ?? So i won't have gains on the 140.000 do i have to buy another property to avoid
Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

Your gain is the difference in your purchase price plus improvements less depreciation and the sale price less costs to sell.
Your mortgage balance is not in the calculation.

You do not have to buy another property to use IRC 121 and exclude.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

Please let me know if you need more information.
If not then scroll up to see the STARS to rate so I am credited.

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