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February 28, 2025
Question

Tax Reporting

  • February 28, 2025
  • 1 reply
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I purchased a home in 2017.  Lived in it for 4 yrs later I purchased another home. I moved out home #1 and lived in home #2.  I have since purchased another home and live in it starting in 2023.

I have rented home #2. Easy peasy.  But home #1 I have sold in 2024 and rented out only for 2 years because family was living in it rent free. 

Can home #1 be reported on my taxes as "main home"?

Or is it considered "real property" on schedule D?

    1 reply

    February 28, 2025

    If you are looking at the exclusion for gain on the sale of your home, it had to be your residence for at least 24 months of the previous 5 years.  Because you rented it, you would have to calculate as Sale of Business Property and it may be reported on Form 4797 (Sale of Business Property) and it would be included on Schedule D.