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April 13, 2024
Question

Acquired home in 2000, lived in home till 2011, rented home from 2011-2021 (10 years), moved back into home 2021-2023. Is there any nonqualifed years i need to claim?

  • April 13, 2024
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April 13, 2024

I sold the house after living in it for 2 years in 2023

April 15, 2024

If you rented it out, you would need to recapture the depreciation

 

However, since you did live in the house for 2 out of the last 5 years, you would be able to claim the home sale exclusion.

 

  1.  If you owned and lived in the home for 2 out of the last 5 years, then you may qualify for the home sale exclusion which would exclude up to $250k ($500k if married filing jointly) of the sale of your home.  In order to qualify you must not have used the home sale exclusion in the past 2 years. 
  2. If you do not qualify, the rest of your income will play a part in the tax rate. This would be a capital gains sale so  your tax rate would be between 0% and 20%. The capital gains rates are as follows based on income
    • Zero percent rate for the following income
      • $44,625 for single or MFS
      • $59,750 for HOH
      • $89,250 for Married Filing Jointly
    • Fifteen percent for income more than above but less than below
      • $276,900 for MFS
      • $492,300 for Single
      • $523,050 for Head of Household
      • $553,850 for Married Filing Jointly
    • Twenty percent for the amount that your taxable income is over the 15% level.
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