What qualifies as a rental property for purposes of capital gains?

bev102554 asked:

I remarried and moved out of my house four years ago. My son remained there until recently. Now I’m ready to sell the house, but do not know if the house would be considered a rental property, since he paid no rent, or would it be considered to have been occupied by me? I am concerned about capital gains taxes, since I have owned the property since 1983.

Comments (2) Posted in United States

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2 Responses to 'What qualifies as a rental property for purposes of capital gains?'

Craig T - August 1st, 2009 at 4:15 pm
Its not a rental house and the capital gains tax on your own residence is only on the amount in excess of $250,000 gain

in other words if you got the house for free, you would have to sell it for $250,001 before the capital gain tax even started and then only on the amount over $250,000
jpr302001 - August 5th, 2009 at 1:11 pm
Hypothetically, if you had no ownership in your new husband’s house, then you might consider claiming this property as your primary residence. Legally, to claim the exclusion it has to be your primary residence for two of the past five years.