Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago on . Most recent reply
Possible to avoid Capital Gains Tax by moving into property?
In regards to the IRS rule(s) that allow single/married individuals to realize a tax free gain on real property sales up to $250k/$500k so long as they live in the property for 2 of the past 5 years, is it possible for an investor to buy a house, rent it out to tenants for many years, turn around and move in to the house, live there for 2 years, and then sell it and avoid paying the capital gains on it?
Most Popular Reply
![Ashish Acharya's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/772592/1723548670-avatar-ashish_cpa.jpg?twic=v1/output=image/crop=1296x1296@741x356/cover=128x128&v=2)
- CPA, CFP®, PFS
- Florida
- 3,151
- Votes |
- 3,839
- Posts
@Account Closed,
What do you think ? If there is a hack like that, IRS already has a remedy.
There is something called non qualified use.
So you have to prorate your gain between taxable and non taxable gain.
There’s is no non qualified use if you buy a house, live in it for 2 years, and rent it out for 3 years, in that order.
- Ashish Acharya
- [email protected]
- 941-914-7779
![business profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/marketplace/business/profile_image/3634/1729597693-company-avatar.jpg?twic=v1/output=image/contain=65x65)