atkinson40
New Member
- Jurisdiction
- California
I'm going to round numbers.
I'm moving into a property for 2 years that I used as a rental. This will give me access to a $500000 maximum capital gains exclusion.
When I sell the house, I will have $550000 in capital gains. I have worked through the worksheets in pub 523 and found that I will have $150000 of unexcludable gain due to the time I rented out the property.
$400000 of the gain will be excluded from taxes.
The $150000 of nonexcludable gain will not be taxed as ordinary income. The first $80000 will be taxed at 0 percent or no tax. The other $70000 will be taxed at 10 percent or $7000.
Do I have the correct approach for the nonexcludable gain?
Thanks
I'm moving into a property for 2 years that I used as a rental. This will give me access to a $500000 maximum capital gains exclusion.
When I sell the house, I will have $550000 in capital gains. I have worked through the worksheets in pub 523 and found that I will have $150000 of unexcludable gain due to the time I rented out the property.
$400000 of the gain will be excluded from taxes.
The $150000 of nonexcludable gain will not be taxed as ordinary income. The first $80000 will be taxed at 0 percent or no tax. The other $70000 will be taxed at 10 percent or $7000.
Do I have the correct approach for the nonexcludable gain?
Thanks