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October 27, 2021
Question

Rental Property Sale

  • October 27, 2021
  • 1 reply
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I sold a rental property in February 2021.  I purchased the property in 2004 and lived there until 2019 when I started renting it out.  I am currently renting a house where I am living but, I plan to purchase a primary resident March 2022.  From the sale, I will have about 50K  profit.  Is this money taxable on my 2021 income taxes?

 

 

    1 reply

    Michele_H
    October 27, 2021

    Hi @a3249532 there is a possibility that a portion of that can be taxable since it was turned into a rental in 2019.  There are a series of questions that are related to the sale of the rental that will help you determine this.

    Here are several articles to help with your situation.

     

    https://turbotax.intuit.com/tax-tips/rental-property/real-estate-tax-and-rental-property/L3e09vT71

    https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals

    https://turbotax.intuit.com/tax-tips/home-ownership/tax-law-for-selling-real-estate/L9PmDNkK5

     

     

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