Sale od secondary house

Forum|Forum|4 years ago
April 17, 2022
1 reply
0 views

Hello, We had transferred the ownership of our secondary house to LLC in January 2021. We have a question related to this.

_This was our primary residence for more than 10 years.

_We moved out of house in Oct 2020 to our new primary residence and so this house was vacant till Jan 2021.

We transferred title of house to LLC in Jan 2021

_We rented this house from Jan 2021 to August 2021 and sold it in September 2021.

Question _ Since this house was owned by LLC when sold, do we have to pay capital gain taxes. Or do we get exemption on profit upto 250K since we lived in the house for more than 2 years out of last 5 years , and only converted to LLC in January 2021

Not A Product Question

LeonardS

Under IRC section 121, a taxpayer must own and occupy the property as a principal residence for two of the five years immediately before the sale. From your post, it appears that you owned and lived in the home for at least 5 years prior to the sale so you would qualify for the exemption.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"