I have rented out part of my house for over 5 years. During these 5 years I live with my tenants in my house. I have reported rental income in my tax return every year. Now I plan to sell my house with a gain of $100,000. Do I need to pay tax on this gain?
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Tax Professional Answers
John Stancil
You will not have to pay tax on the entire gain. You will need to pay tax on the depreciation recapture up to the amount of gain realized. Then you will need to allocate the gain between the rental portion and the personal residence portion.
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403 weeks ago