Selling my rental.
I lost my job in 2007 due to massive layoffs. I moved to Tulare Ca and within a year and a half I was able to get a job with the City of Tulare through a agency. There was a opening at the City of Lodi where I used to live and I applied but I didn’t get the job. I bought a home just shortly after that. 6 months later the City of Lodi contacted me about a opening and I got the job. I only lived in the home in for 6 months and came back home to Lodi and rented my home. I am selling my house now and wanted to ask if I have to pay capital gains even though I left for a City Job back home.
Terry Says
Whew, that’s complicated! I left the question intact because I couldn’t figure out how to shorten it! First, I assume you are selling at a gain, and are worried about the taxes you would have to pay. If it was your personal residence for two of the past five years before you sold it, you can exclude $250,000 of taxes. But since you not only lived in it for a short period, but also rented it out (for an undetermined amount of time) you would owe capital gains taxes on it (long term, assuming you owned it for over a year). But the amount could be mitigated if you “improved” the property, spending money which could increase your tax “basis” or cost. I suggest you use a CPA to prepare your return — especially this year with the higher standard deduction. It might still be worth figuring out if you have enough moving expenses to itemize your deductions.
