Bradenton, FL asked in Tax Law for Texas

Q: Do I qualify for capital gains relief on sale of my rented house?

In 2015 my wife and I moved to Dallas from our primary residence in Austin for a new job opportunity. We rented the house out until 2019 when we then sold it. According to IRS publication 523 if you take a job over 50 miles from your primary residence, you should be eligible for some capital gains relief, however, my cpa thinks that because we rented it out, we no longer qualify for this exemption. Is this correct?

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1 Lawyer Answer
Kacie Marie Czapla
Kacie Marie Czapla
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Answered
  • Tax Law Lawyer
  • Tyler, TX
  • Licensed in Texas

A: Your CPA is probably correct (at least in part). It depends on how long you used it as a rental property. I published a article in the Tax Adviser on this code section (section 121).

https://www.thetaxadviser.com/issues/2019/apr/involuntary-conversion-principal-residence.html

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