Tax after selling renter property

[Bhushan Walde]

Hey guys,

I am in Texas, I bought my first property lived in it for 3 years then rented it for 2 years and now I sold it.

After selling this property, I bought 2 more rental properties from the proceeding.

Now my tax guy is saying I owe to the IRS. My question is. What are different deductions and can I do like for like exchange ? How Is that works?

Regards

Bhushan

[Greg H.]

As stated, you will not be able to do a 1031 exchange as you have already close.  However, you appear to be eligible to claim the sale of your personal residence as you resided in the property for at least 2 out of 5 years.  While you will probably have some depreciation recapture, most of the gain should be exempt up to $250k single/$500k married.  Consult with a tax professional