I have a "Sale of Business Property" income for this year. I sold a rental property, but it qualified for the full gain exemption. What is this from?

Forum|Forum|1 year ago
March 7, 2025
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Hello, I hope all is well! I have a "Sale of Business Property" income in 2024 of $8,358.00. I sold a home that I purchased originally for 130k for 250k this year. It was a rental, but having lived in it for greater than 2 of the last five years before being a rental, it said it qualified for the full gain exemption. What is this income from? There are no additional details about where this was tabulated.

RobertB4444

The taxable gain that you're seeing is a recapture of the depreciation that you took while the property was a rental. You got to deduct it so the IRS requires that it be taxable at the time of sale even if the rest of the gain is tax exempt.

@cynicalnewenglander

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