How to report sale of rental house that used to be primary residence

Forum|Forum|4 years ago
July 12, 2022
4 replies
28 views

Primary residence as of mid-2016. Client got married and moved to spouse's house in mid-2019. Rented her house mid-2019 till its sale expected end of 2022. Is there a way to squeeze out a portion of the 250K forgiveness for selling a house that was a primary residence for 1.5yrs.

ProSeries Professional

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Best answer by TaxGuyBill

Unless she moved out-of-town and meets the 50 mile employment Safe Harbor, I don't see it qualifying for an exclusion.

https://www.irs.gov/publications/p523#en_US_2021_publink100073096

dkh

Level 15

Sell date 2022 - last used as residence 2019...so falls within 5 year period. How did you calculate the 1.5years of residence ? If she lived there mid-2016 to mid-2019, isn't that 3 years ?

G

GretaAuthor

Level 7

My rental schedule shows rental began June 2019, and house hasn't sold yet, so I figured that's over 3 of most recent 5 years. I am looking to see if she is eligible for an extenuating circumstance to give her partial forgiveness of gain; and if she somehow qualifies, how to combine Sch D and 4797