I sold my house this year. I bought and lived in it from Jan '18 to Dec '22 (5 yrs), and then rented it out from Dec '22 to April '24 (17 mos). Is this sale taxable?

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February 4, 2025
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I sold my house this year. I bought and lived in it from Jan '18 to Dec '22 (5 yrs), and then rented it out from Dec '22 to April '24 (17 mos). Is this sale taxable? I lived in the house for 3 of the last 5 years we owned it, but I rented it out last year and claimed it as a rental property on my last years taxes. How would I enter this in my taxes?

Mike9241

yes.. if there is a gain you must recapture the depreciation taken limited to the gain. any excess gain would qualify for the home sale exclusion ($250,000 if you are single) since you owned and lived in it for at least 2 out of the 5 years before the sale. use the home ale worksheet because that will allow you to report the depreciation taken subject to recapture.