Capital Gains Tax Question On Sale Of Prior Rental Property
I rented my condo in 2000-2003. However, I only took the depreciation in 2000, and 2001. The property is no longer a rental. I want to sell in October of this year. However, I am very concerned about the possible tax consequences. I have had a relative live in it since 2004 and this year. The property was originally purchased for $53,000. I expect to sell it for $150,000.
I need some advice prior to the sale. Would it be advantageous to refinance cash out and hold on to it longer? Should I convert it back to rental? Please provide any advice or feedback
Thank you.
What will the relative do for housing when you sell? Is the relative paying rent now?
If the property is producing income, why do you need to sell?
Do you need to sell right away, or do you have time to position your property for better income tax consequences?
Does your relative pay rent now?
Have you lived in the property as your primary residence in the last 60 months?
What is your objective going forward? To reinvest or to cash out?
How have you been reporting the property while your relative has been living there?
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