All Forum Posts by: Shay Kent

Which would be the case if it was a rental for like...8 years...then you moved into it for 2. Those initial 8 years woudln't qualify as tax free so only 20% of your gain would.

Yes, it was only our primary before the 1 year as a rental. Thank you so much! He's getting it from Publication 523. https://www.irs.gov/publicatio...

Is there something I should point him to? I don't really know what to tell him now.

Thank you so much!

Shay

I mean honestly he is so far incorrect on a VERY common tax law that I would disengage and go elsewhere. He's calculating it using the non-qualified use worksheet (which again, is if there's rental use FIRST then you move in) But if it's your primary for at least 2 you can rent it for up to 3 and still fully qualify.

This isn't like a ...tricky complicated situation. You should not have to be teaching him this.

IRC 121 is the guidance on it https://www.law.cornell.edu/us...

Specifically this part :

(C)Period of nonqualified useFor purposes of this paragraph—(i)In general

The term “period of nonqualified use” means any period (other than the portion of any period preceding January 1, 2009) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse.

(ii)ExceptionsThe term “period of nonqualified use” does not include—(I)any portion of the 5-year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse,

Thank you so much!!! REALLY appreciate it!

1 Vote

Denver, Colorado

Quote from @Natalie Kolodij:

Just to confirm...

You occupied it FIRST then rented for a year?

There was no rental use BEFORE you moved into it right?

If so, then your CPA is 10000% wrong. It's 2 of the last 5 years period.

So you can live in a home for 2, rent it for up to 3 and still sell tax free (except depreciation recapture)

He's calculating it like non-qualifeid use

Which would be the case if it was a rental for like...8 years...then you moved into it for 2. Those initial 8 years woudln't qualify as tax free so only 20% of your gain would.

Yes, it was only our primary before the 1 year as a rental. Thank you so much! He's getting it from Publication 523. https://www.irs.gov/publicatio...

Is there something I should point him to? I don't really know what to tell him now.

Thank you so much!

Shay

0 Votes

Denver, Colorado

Thank you all so much! Really, I appreciate it a lot.

0 Votes

Denver, Colorado

We lived in our primary home for 3 of the last 5 years. We rented it out for a year and then sold it. Do we owe capitals gains on it?

Our CPA says that as soon as we rented it out it became a business and we have to pay business tax plus the percentage of the time used as a rental (12% of the time). I think this sounds wrong. Any help would be fantastic. Thank you!

Shay

1 Vote

Denver, Colorado

@M Marie M. The zillow listing price was wrong! EEEK! Got that changed this morning. It appraised at $197,000

1 Vote

New pics are happening on Monday

0 Votes

before

after

Would it be worth doing a campaign of a before and after somehow? Going to post flyers around community centers, churches, Denny's, Elk Clubs, Ad in the newspaper....

0 Votes

No professional photos, which my realtor said the ones I took were fine (I agree with you). It was staged, then we unstaged it because we were closing, then she changed her mind the night before. So I'm re-staging it, getting photos and updating the listing.

1 Vote

@Christopher Phillips I was thinking of my other property. This one we bought in April for $155k. As a flip. put $21k into it. It appraised at $197k

0 Votes

@Account Closed this is intriguing. Wouldn't work on this because we have a hard money loan. But I have another property that's a normal mortgage. How does that work? It rent's out at $1550/month. My mortgage is $1140. What would I charge?

0 Votes

All Forum Posts by: Shay Kent

Shay Kent has started 8 posts and replied 26 times.

Post: Do we owe capital gains? I disagree with my cpa. advice needed, thanks!

Post: Do we owe capital gains? I disagree with my cpa. advice needed, thanks!

Post: Do we owe capital gains? I disagree with my cpa. advice needed, thanks!

Post: Do we owe capital gains? I disagree with my cpa. advice needed, thanks!

Post: HELP! Need to get this condo sold- Outside the box Ideas Needed!

Post: HELP! Need to get this condo sold- Outside the box Ideas Needed!

Post: HELP! Need to get this condo sold- Outside the box Ideas Needed!

Post: HELP! Need to get this condo sold- Outside the box Ideas Needed!

Post: HELP! Need to get this condo sold- Outside the box Ideas Needed!

Post: HELP! Need to get this condo sold- Outside the box Ideas Needed!