Question

Primary resident TO short term rental TO primary resident

Forum|Forum|4 years ago
June 10, 2021
2 replies
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Owned a single family home since 1999 as my primary residence. Rented out under LLC (and claimed some tax and repair deductions) from 2016 to mid 2020 (3.5 years). Renters moved out, I moved back in for a couple of months to repair/clean up and then sold the house late 2020. For my fed taxes, am I able to claim as a primary resident sale or am I forced to go the rental only sale? Obviously I ask for the purpose of reduction of capital gains. The house sold for less than $200,000. If I can claim as primary resident, what sections do I use to input the sale and how do I go about that?

Thanks

Critter-3

You will sell the rental in the rental section ONLY ... you do not qualify for the Personal Residence exclusion.

Carl11_2

Employee

I moved back in for a couple of months to repair/clean up

So the house was not your primary residence, as your primary reason for moving back in was to repair/clean-up. Not to make it your primary residence or 2nd home. Therefore, the classification of the property remains as a rental. So nothing changes. You report the sale in the SCH E section of the program.