Q: If I bought my home in 2009 and rented it out for 11 months in 2011, will I owe property gains tax if I sell it?
I originally purchased the home for 228000, now we are selling for 349000. It has been our primary residence since 2009 except for the 11 months in 2011.
A: Take a look at IRS Publication 523 to review the US tax treatment. The gain can be exempt if you meet the requirements and the dollar thresholds. That publication mentions that the prior use of space for rental does not disqualify exemption treatment if at the time of sale the property is used as the taxpayers primary residence.
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