All Forum Posts by: Eric Richison

Thanks so much.

@Dave Toelkes my employer is not the US government. I was sent on a 2 year assignment to Germany then once that assignment was ending, they offered me another 2 year assignment in China.

The property does cash flow; however, it is circa 1928 so the ongoing potential maintenance is not ideal for us. We will potentially being moving out of our current market within the next 12-18 months and would like to put the proceeds toward a primary residence, and potentially rental(s), in our new location.

Thanks so much!

@Ashish Acharya, thanks for the response. I have a couple follow up questions.

- Can employment be used an exception for the non-qualified use period? Similar to how the capital gain exemption can be pro rated if you're forced to move for employment.

- If the answer above is no, is the non-excludable gain (151k in your calculation) taxed at the capital gains rate or the ordinary income rate?

Hi all,

I'm looking into the tax implication of selling my current primary residence, which I used as a rental during a 4 year stint my employer sent me abroad. I'm interested to learn if there is any exceptions to the non-qualified use period or if the only option is a 1031. Here are some of the details.

Purchased: May 2010 @ 325k

Primary residence: May 2010 - July 2013

Rental: July 2013 - July 2017 (Period my employer sent me abroad)

Primary residence: Aug 2017 - Aug 2019 (targeting to sale Aug 2019 to qualify for the 2 out of last 5 year capital gains exclusion)

Estimate sale price: $675k

Profit: $350k

Must I count the 4 years my employer sent me abroad and I rented the property as non-qualified use? 

If my math is right this would amount to ~44% or ~23k in capital gains tax @ 15%.

For completeness, I'm also aware I must recapture the depreciation @ 25%.

Thanks in advance.