The primary residence exclusion on capital gain tax is 250K per person, 500K per couple.
The taxable gain is calcuated by deducting sales price minus (the purchase price, the cost of purchase and the cost of sales (agent commission etc) and all cost invovled in improve the home (new roof, new kitchen etc)).
You can rent out the home for 3 years after you moved out, if you sold the home before your move out date + 3 years, you can claim the whole amount of the exclusion. However, if you sold your house after you moveout date + 3 years, you lose the exclusion completely. But renting out 3 years won't save you any taxes. You'll have the hassle of reporting 3 years of rental income and depreciation it just make things for complicated if you are not a landlord.
1031 exchange won't work right now, because 1031 exchange is only for investment property, not primary residence.
Your best course of action is sell the house now. When you can't sell house for a good price, consider rent out for 1-2 years tops. Again, renting won't save you any taxes.
1. The exclusion rule is you have to live in the house 2 years out of 5 years before the sale.
2. Exception for exclusion rule is: you qualify for partial exclusion if you moved out because (1) change of employment more than 50 miles away; (2) health reasons (3) other unforeseen circumstances (death in family, divorce etc).
In your case, you only lived in the house for 9 months. Assuming you qualify the exemption under (1), you don't qualify for full 500K exclusion, you qualify for 9 months / 24 months x 500K = $187.5K being excluded from your taxable capital gain. (This is an estimate, actual math is based on days not months).
3. When should you sell your home to enjoy the partial exclusion.
This part I am not too sure about if 5 years period still applies. It is clear that if you lived 2 years and rented 3 years it qualifies as full exclusion of $500K (see IRC below). But since you lived 9 months, and have the exemption to 2 years out of 5 years rule, do you now enjoy (60 - 9 months) = 51 months of rental period without losing the exclusion?
I would consult an accountant on this issue. From the plain meaning of the law it seems to mean you have 51 months.
(I) any portion of the 5-year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse,
The law says any portion of the 5 years AFTER the last date as principal residence is not counted as nonqualified use.
I mistakenly focused on (ii) Exception (I), your case is actually in (ii) Exception (III), it clearly says you have two years to sell after moving out.
(I) any portion of the 5-year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse, (II) any period (not to exceed an aggregate period of 10 years) during which the taxpayer or the taxpayer’s spouse is serving on qualified official extended duty (as defined in subsection (d)(9)(C)) described in clause (i), (ii), or (iii) of subsection (d)(9)(A), and (III) any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the Secretary.
一直在出租和卖之间犹豫不定，即不想操心作房东，又有些舍不得卖，毕竟房子是很好的投资渠道
accountant建议我留下来，然后请管理公司打理，通常管理公司是怎么收费的呢？如果管理公司管理，我就都不用操心了吗？
听说可以做交换，或把盈利部分用来买下一个房子，但是必须是投资房才能有这种操作是吗？
对于投资我一贯保守，所以很少来投坛学习，先谢过了
The primary residence exclusion on capital gain tax is 250K per person, 500K per couple.
The taxable gain is calcuated by deducting sales price minus (the purchase price, the cost of purchase and the cost of sales (agent commission etc) and all cost invovled in improve the home (new roof, new kitchen etc)).
You can rent out the home for 3 years after you moved out, if you sold the home before your move out date + 3 years, you can claim the whole amount of the exclusion. However, if you sold your house after you moveout date + 3 years, you lose the exclusion completely. But renting out 3 years won't save you any taxes. You'll have the hassle of reporting 3 years of rental income and depreciation it just make things for complicated if you are not a landlord.
1031 exchange won't work right now, because 1031 exchange is only for investment property, not primary residence.
Your best course of action is sell the house now. When you can't sell house for a good price, consider rent out for 1-2 years tops. Again, renting won't save you any taxes.
由于换工作搬去别州，现将此房出租。按照上面的说法，是不是出租不要超过三年就卖掉更好？假设卖掉是赚钱的。
1. The exclusion rule is you have to live in the house 2 years out of 5 years before the sale.
2. Exception for exclusion rule is: you qualify for partial exclusion if you moved out because (1) change of employment more than 50 miles away; (2) health reasons (3) other unforeseen circumstances (death in family, divorce etc).
In your case, you only lived in the house for 9 months. Assuming you qualify the exemption under (1), you don't qualify for full 500K exclusion, you qualify for 9 months / 24 months x 500K = $187.5K being excluded from your taxable capital gain. (This is an estimate, actual math is based on days not months).
3. When should you sell your home to enjoy the partial exclusion.
This part I am not too sure about if 5 years period still applies. It is clear that if you lived 2 years and rented 3 years it qualifies as full exclusion of $500K (see IRC below). But since you lived 9 months, and have the exemption to 2 years out of 5 years rule, do you now enjoy (60 - 9 months) = 51 months of rental period without losing the exclusion?
I would consult an accountant on this issue. From the plain meaning of the law it seems to mean you have 51 months.
Internal Revenue code provides that:
https://www.law.cornell.edu/uscode/text/26/121
(C)Period of nonqualified use(ii)Exceptions The term “period of nonqualified use” does not include—
(I) any portion of the 5-year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse,The law says any portion of the 5 years AFTER the last date as principal residence is not counted as nonqualified use.
I mistakenly focused on (ii) Exception (I), your case is actually in (ii) Exception (III), it clearly says you have two years to sell after moving out.
https://www.law.cornell.edu/uscode/text/26/121?
(ii)ExceptionsThe term “period of nonqualified use” does not include—
(I) any portion of the 5-year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse, (II) any period (not to exceed an aggregate period of 10 years) during which the taxpayer or the taxpayer’s spouse is serving on qualified official extended duty (as defined in subsection (d)(9)(C)) described in clause (i), (ii), or (iii) of subsection (d)(9)(A), and (III) any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the Secretary.卖出就可以亨受。那么如果二年后继续出租，后果就是不能亨受这个exclusion?
所以这个搬出日期需要好好研究，如果没有马上换驾照什么的，或许可以算到租客搬入的前一天。
你有没有讨价还价的text？如果什么都没有，那么你怎么证明你花了这几万元？
50万免税也可以拿到
最好有工作的具体细节，比如多大面积的瓷砖，几个水池子之类的细节。甚至完工前后的照片也可以做佐证。反正是和工程有关的任何信息都是有用的。