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You can exclude $250,000 less the depreciation allowed or
allowable since May 7 1997. That amount is not excludable
and is recaptured on sale. If Married filing jpintly the
figure could be 500,000 less depreciaiton.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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can you add the link you are talking about?

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- quote -

Let's put some numbers.
Bought a house for $100K and lived for 2 years, turned into
a rental for 10 years, used $5000 depreciation per year for
10 years of rental, moved back in and lived in for last 2
years, sold it for let's say $400K.

in this case, is there capital gain or all gain is exampt?

just in order to understand completely, I add some numbers.
Thank you for your help.

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- quote -

I asked a similar question (what if we move back into our
former rent house and live there for at least two years,
then sell) a while back and got several good answers, all of
which said that, yes, the sale is tax exempt, but you will
have to recapture the depreciation. Here's the Google link
to that thread if you're interested:

--
John Goulden

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- quote -

Absolutely. They would use the remaining basis the rental
property had at the point of conversion as their basis and
then add the cost of the remodeling, assuming it would be
capital improvements, not just cosmetic repairs.

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Boy, I wish I could "KNOW" I would live 2 more years. I
certainly hope I will but to "KNOW" would be wonderful.
Rock climbing and professional race car driving school, here
I come.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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I am new to this group. Excuse me if I asked in wrong group.
My parents has an rental house for 10 years. They are
thinking about moving in and retire in that house after
remodeling the house. Would that become their primary
residence and claim for tax exampt if they sell the house
after 2 years period of living? I know they will live more
than 2 years, but just for the sake of tax question.

thanks

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