Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago,

User Stats

17
Posts
3
Votes
Tom Seigold
3
Votes |
17
Posts

Tax on appreciation when converting home to rental

Tom Seigold
Posted

I'm aware that if you sell a home that you've lived in for 2 years, and use that money toward a new home you will live in, that the tax on appreciation is waived.  This compared to investment properties, where that tax is merely deferred.

I'm considering living in a home for two years and *then* moving out and using it as a rental.  But it sounds like I'd miss out on those tax benefits (I'd have to pay taxes on the appreciation for the period where I lived there).

Is there any way around that?  For example, if I live in the home for 2 years, then move out and rent it out for 8 years and then sell it, can I provide documentation to an accountant and waive taxes on the first two years of appreciation, and defer taxes on the 8 years where I use it as a rental?

Loading replies...