Reply To: Taxable gain on sale of formerly rented house?

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#3567
fairira
Participant

Kaneohe,

Thank you for your very helpful comments and link.

I’ll try to find out if there have been any more changes since the article in the link is now 5 years old.

Re the tax on a future house sale if he lives in it for 2 years: I assume he could elect to include at least $25,000. in capital gain as investment income in line 4g of Form 4952 (Net Investment Interest Expense). Could he do this also with the added proration adjustment to his gain and/or with the unrecaptured depreciation of $17,400.?

Thanks again.