Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-05-2016, 01:38 PM
Junior Member
 
Join Date: May 2016
Posts: 1
sale of main home turned rental

When my husband got a job with an 80 mile one way commute, we decided to move where his job is and rent our family home. That was in July of 2011. It has been rented pretty much the entire time and we are now getting ready to list it for sale. What tax implications are we possibly facing? Does it help at all that we only rented the home because of moving for a job?
Thank you!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 05-06-2016, 05:44 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
When my husband got a job with an 80 mile one way commute, we decided to move where his job is and rent our family home. That was in July of 2011. It has been rented pretty much the entire time and we are now getting ready to list it for sale. What tax implications are we possibly facing? =====>>>>>>>>>>>>It depends on if you dispose ot it as rental home or a primay home;aslongas you sell it a rental home, you need to report the sale of the rental property on Form 4797 then, you must recapture Sec 1250 depreciation(taken previously) taxed at 25% as ordinary income. The sale of the rental house goes in Part 3 of the 4797 as a Sec. 1250 Property. The sale of the land goes on Part 1of the 4797. It gets combined on line 13 of your Form 1040 as a capital asset.; this does count as two sales on your 4797, but one as a Sch D , form 8949 capital asset, sec 1231 asset Imean ;it necessary to separate the land and the rental house part of the sale. If it?s a loss, report the sale on Form 4797, Part I and in this case you do not need to recapture the unrecap sec 1250 depreciation.

However, if you sell it as a primary home, then, ordinarily, you are entitled to a $500Klong term capital gains exclusion on the sale of the home as a personal residence by using it for at least 3 of the 5 years prior to the sale. If you sell the house on which you have a loss or can exclude the entire capital gain, and you don't get a 1099-S form, you don't have to report it. However, when you have a gain to report, if you get a 1099-S form, you'll have to file extra paperwork for the irs with your tax return and potentially pay additional tax.

Does it help at all that we only rented the home because of moving for a job?
=======>>>>>>>>>I do not think so BUT, actually as said it depends if you dispose of it as a rental home or a primary home. so, if you sell it as a primary home, then, you are entitled to a $500Klong term capital gains exclusion on the sale of the home as a personal residence by using it for at least 3 of the 5 years prior to the sale.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
main home turned rental and then abandoned chasamber Rental Real-Estate 1 04-14-2015 03:11 AM
Sale of former residence turned rental at a loss ILtoTX Rental Real-Estate 1 03-05-2015 02:54 AM
Sale of a home that used to be a rental Nasmeh Capital Gains 1 01-18-2014 06:43 PM
how to report sold a property used as main home and rental ojaitax Sole-Proprietorship 7 03-31-2013 05:20 PM
Capital Losses on the sale of Second home turned into Rental Property? emc2005 Capital Gains 1 07-30-2007 05:52 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning