Capital Gain 121 Exclusion

[Ange Johnson]

Wanting verification that I am reading Capital Gains Exclusion 121 Code correctly.

We bought a property 8/15 for $175k.  We were primary residents (30 months) until 4/1/18 when we rented the home until current.  We are considering selling the home but are unclear if we need to have owned the property for a minimum of 5 years.  (We would anticipate a closing date in April, so we would have only owned the property for approximately 44 months.

[Ashish Acharya]

Originally posted by @Ange Johnson:

Wanting verification that I am reading Capital Gains Exclusion 121 Code correctly.

We bought a property 8/15 for $175k.  We were primary residents (30 months) until 4/1/18 when we rented the home until current.  We are considering selling the home but are unclear if we need to have owned the property for a minimum of 5 years.  (We would anticipate a closing date in April, so we would have only owned the property for approximately 44 months.

 No, you dont have to own for 5 years. You qualify for the exclusion if you have not used the same exclusion in the last two years. 

Only tax you will pay is the max 25% tax on the unrecaptured section 1250 depreciation ( amount of depreciation you were allowed to take during rental period * maximum of 25% )