Can I still apply the principle residence exclusion if I rent my home?

September 13, 2006

From:  Niles
Date:  Wed, 05 Apr 2006

I will have owned my principal residence in Boston for two years in August. If I started renting the home after August, would I lose the exclusion for sale of a principal residence? What if I started renting the home before August?


Date:  Fri, 05 May 2006

Hello Niles,

If you started renting the home after owning and using it more than two years, you would have three more years during which you could claim the exclusion. The requirement is that you used the home as your principal residence for two years or more during a five-year period ending on the sale date.

If you start renting the home before August, you will lose the opportunity to qualify for the principal residence exclusion, unless you move back into the property at a later date.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+
Our Blog
© 2018

Subscribe to Michael Gray, CPA's
Tax & Business Insight

We respect your email privacy