Long term capital gains tax

[Mark H.]

Hello BP friends,

I want to sell a rental property purchased last year and pay long term capital gains tax. I understand it requires more than 365 days to pass from the day I bought it till the day I sell it.

My questions:

1. Does the sale date refer to the date of the signed sales agreement or the closing date?

2. If I list it for sale 11 months since purchase but I make sure to sign the sale contract after 12 months, can I still qualify for long term capital gains tax? Or does the listing date have to be over a year as well?

Thanks in advance for your help!

[Michael Plaks]

@Carl Fischer

You're correct: for the capital gains, the clock starts on the date of purchase. 

Date in service is for deductions and depreciation purposes.