Home Sale Exclusion on rented property

[ptax255]

Hello, A client lived in the property for 3 out of the last 5 years and the property was rented the last 2 years before selling. She claims she was told by another accountant that the gain will be taxable. Is that correct? The tests to exclude the gain are all met. I believe the only taxable amount will be depreciation recapture?

[IRonMaN · Accepted solution]

If clients knew everything, they wouldn't need us.  Usually most of their information comes from their barber.  Maybe that other accountant is a barber moonlighting as an accountant.

[ptax255]

Probably, thanks for confirming.

[IRonMaN]

You betcha!