Question
Sold my Rental property Tax Pay
Hello, I bought a property on 12/31/2015 as a primary residence, and converted to a rental property on 10/22/2018, lived in the house almost 2 years. I sold the property last year on 4/30/2019. I went into the "Rental properties and Royalties" section and completed all the information there - Sale of Property/Deprecation, etc. It is showing a gain of almost $21K due to depreciation kicks in. Where is the "2 out of 5 years" rule apply? I thought if you live in a house as a primary residence then you don't have to pay tax on the gain. Is this correct?
