Rental Rant

[akfodysvn]

Your cpa is not correct. Sounds like you're good to go if I'm reading your messages correctly but to simplify if you've lived in it 2 of the last five you can avoid all capital gains. You will still have to recapture depreciation though. You could also move back into it if needed to meet the standard of current law.

For those thinking this can't happen to them...it can. You can live in your primary for 20, 30, 50 years. Under current law f you decide to rent it and rent it longer than 3 years you will pay full capital gains and miss out on the exclusion you could have got if you just would have sold it outright to begin with.

[TX_92_Notch]

Thanks for the replies, fellas. This is why I posted here. I know several of you are involved in rental properties and hoped you'd be able to point me in the right direction.

I'll talk to my CPA again with this information in hand.

[8mpg]

You gotta read up on rentals. $220/mo is good even if its eaten up by repairs. Real estate is a long term gain. Add in your monthly mortgage paydown and any appreciation in value over the last year.