Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It only takes a minute to sign up.
Sign up to join this community
I’ve owned a property for 2 years exactly. I’ve lived in it for just over 12 months and have rented it out for 12 months so far.
I want to understand if I would pay taxes if my gain was under $250,000. If so, how much? Is it 30% of the gain? I’m confused because everything I’ve been reading talks about 2/5 years rule but what I’ve only had the property for 2 years total. Thank you.
The 2/5 means you had to live in it for 2 of prior 5 years.
You did not do that, you turned it into a rental after 1 year. The gain exclusion does not apply to you.
