Posted by Mike (Seattle Wa) on June 14, 2007 at 11:12:34:
No State CG tax in Wa 
tax implications on sale of rental - Posted by Jerry-WA
Posted by Jerry-WA on June 12, 2007 at 11:06:26:
Is there a one time only exemption of capital gains taxes available on the sale of a NOO property? It seems as if I’ve heard something like that. I understand that primary home sales are exempt if you’ve lived there for two years but this is a rental property that I lived in for two years 14 years ago and has since been rented. Thanks for any and all info.
jerry
Re: tax implications on sale of rental - Posted by dealmaker
Posted by dealmaker on June 12, 2007 at 11:17:04:
Nope; no exemption unless you’ve lived there 2 OF THE LAST 5 YEARS. You could move back in for 2 years and then sell it. Or do a 1031 exchange.
Since you’re in WA I’m guessing you’ve got some pretty good appreciation, and a proportional LT Capital Gains (and state tax) hit.
Study up on the 1031 exchange and see how it works for you. I’ve seen people with big appreciation sell their current house-with big appreciation-move back into the rental and do a bit of improvements to amp the value and then sell it 2 years later.
Good luck.
dealmaker