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.

  • I thought the 2/5 year "loophole" was closed in 2009. – Atsby May 4 '15 at 8:35
  • I added an IRS link to my answer. No, the rules weren't changed in 2009. – JTP - Apologise to Monica May 4 '15 at 9:43

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.