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Tax question on selling a home or renting out current home

kahoots 751 275 December 8, 2015 at 11:11 AM in Home & Home Improvement (2)
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Last Edited by kahoots December 8, 2015 at 11:20 AM
We are currently looking into purchasing our 2nd home and are debating if we should sell our first or rent it out. If we sell it, we are exempted from taxes up to $500,000. https://www.irs.gov/taxtopics/tc701.html

However, if we rent it out for 2 years before selling, do we still qualify for this? We have lived here for over 2 years so i am questioning the 5 year rule as this will not be my primary resident. Thanks!
https://www.irs.gov/publications/p523/index.html

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#2
You should consult your tax professional, but yes, you would be fine to rent it for two years and then sell it as long as you've been in it currently for at least two years.
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#3
Quote from Boomancini View Post :
You should consult your tax professional, but yes, you would be fine to rent it for two years and then sell it as long as you've been in it currently for at least two years.
Thanks. I was finally able to get through to her and she confirmed it. As long as you stay below the 5 year mark and have lived there for 2 years then I should be okay. Thanks again!
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