Alex M wrote:
- quote -

The new rule should not change your situation at all. In a nutshell, if
you meet the Section 121 gain exclusion rules from time of purchase up
through the most recent two years, you can convert to a rental for up to
three additional years beyond that and still use the full exclusion.
What you can no longer do is rent out a property for a long time, then
move into it for the last two years before sale and use the full
exclusion based on those last two years.

I'm leaving out a lot of details, such as pre-2009 "grandfathered" use,
the proration calculation, and so on.

Also, don't forget that gain due to depreciation allowed (or allowable)
since you converted to a rental continues to be not excludable.


-Mark Bole

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Hi,
Will really appreciate any advice on the following situation.

Owned a house for last 10 years and I have in access of 250K gains. I
have been renting this house since Jan 2007 and before that it was my
primary residence. If continue to rent the property till April 2009 and
sell this house in April 2009, how will my 250K deduction on home sale gains
will be impacted. Please share your wisdom
thanks
VJ-

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >