All Forum Posts by: Ryan Faber

Congrats @Michael Bennett. Nice to have that first one done.

I thought the same as @Jonathan Boyd. I'll be there next time.

Do we have to be members of REIA to attend?

I just moved into Bentonville and I'm going to try to make it down. Looking forward to learning about real estate in NWA.

Thanks @Ashish Acharya and @Frank Chin. I did have the rental portion separated on my schedule E, so I think Ashish nailed it with his response. I appreciate the time you've spent answering my question. 

@Frank Chin, that makes sense. The part that I'm caught up on is that in IRS Publication 523, page 11, it says the following, which is where I think my situation is a little different because I rented out bedrooms rather than units in a X-plex:

The home is under my name, but we were planning on filing jointly. That is where we don't meet the residence requirement.

Looking at the partial exclusion, based on the residence requirement of each living in the residence for 24 months I calculated this:

(24 months[me] + 12 months[spouse])/(48 months) = 75% partial exclusion = .75*$500,000 (married filing jointly) = $375,000 exclusion

Am I thinking along the right lines? And yes, I will have my tax professional go over it. He just hasn't done exclusions on partial rentals within the living area before, so I was trying to wrap my head around it ahead of time since this will be on my 2018 return.

I'm selling my house and want to understand the tax implications on the sale, because I have lived in it as well as rented out a portion of it. I've been studying IRS publication 523 and I would like to get some input. Here is my situation:

• I've owned and lived in my house as my primary residence for 3 years.
• Up until the last year, I have rented out spare bedrooms (space within the living area).
• I got married about a year ago and my spouse has now been living in the house as her primary residence for 12 months.

Question 1: IRS publication 523 states in the section under Business or Rental Use of Home, "If the space you used for business of rental purposes was within the living area of the home, then your usage doesn't affect your gain or loss calculations. Examples of spaces within the living area include a rented spare bedroom." I am correct to understand that renting out rooms in my house doesn't effect my eligibility for the exclusion?

Question 2: In going through the eligibility test, the only part I think I don't meet is Step 3--Residence, which requires 24 months of residence over the past 5 years. It also states, "Unlike the ownership requirement, each spouse must meet the residence requirement individually for a married couple filing jointly to get the full exclusion." Because my spouse will only be able to claim the house as her primary residence for 12 months am I correct to understand that we don't pass the eligibility test for the full exclusion?

Question 3: If I don't meet the full exclusion, I certainly meet the criteria for a "Work-Related Move," meaning that I would qualify for a partial exclusion. How would I calculate that partial exclusion?

Thanks!