selling a rental property and taxes - Posted by Chris

Posted by Chris on May 09, 2006 at 10:03:17:

So, in short, I’m right about the 2/5 tax situation? You must live in a property for any 2 of the last 5 years to sell tax-free? Thanks so much for your input!

selling a rental property and taxes - Posted by Chris

Posted by Chris on May 04, 2006 at 17:15:11:

Hi,
I’m about to close on a property I’ve owned for just over 5 years (January 2001-May 2006). I lived there from before Jan. 01 until June 1, 2003 (I can prove this with my tax returns from 01’ and '02). Do I have to pay federal and state taxes on the sale, considering I lived there for 2 of the last 5 years?
Thanks

Re: selling a rental property and taxes - Posted by The Frisco Kid

Posted by The Frisco Kid on May 06, 2006 at 20:14:40:

Chris

Isn’t it nice to sell something tax free, just one more thing, were utilities on and in your name during that period?

Re: selling a rental property and taxes - Posted by Chris

Posted by Chris on May 07, 2006 at 09:50:40:

During which period? When I lived there? …or were the utilities in my name when the tenants lived there? The answers are yes to the first question, no to the second

Re: selling a rental property and taxes - Posted by The Frisco Kid

Posted by The Frisco Kid on May 09, 2006 at 24:29:30:

Chris

Good! That backs up your claim of living there during those two years, and anything that helps verify your claims if your unlucky enough to be the target of a random audit by the IRS is good.