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Updated almost 2 years ago on . Most recent reply
Do we owe capital gains? I disagree with my cpa. advice needed, thanks!
We lived in our primary home for 3 of the last 5 years. We rented it out for a year and then sold it. Do we owe capitals gains on it?
Our CPA says that as soon as we rented it out it became a business and we have to pay business tax plus the percentage of the time used as a rental (12% of the time). I think this sounds wrong. Any help would be fantastic. Thank you!
Shay
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#2 Tax, SDIRAs & Cost Segregation Contributor
- CPA, CFP®, PFS
- Florida
Quote from @Shay Kent:
We lived in our primary home for 3 of the last 5 years. We rented it out for a year and then sold it. Do we owe capitals gains on it?
Our CPA says that as soon as we rented it out it became a business and we have to pay business tax plus the percentage of the time used as a rental (12% of the time). I think this sounds wrong. Any help would be fantastic. Thank you!
Shay
You don't owe anything other than depreciation recapture. Time for a new CPA.
- Ashish Acharya
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