Originally Posted by Dash man
You have to live in the home for at least two of the previous five years to get the tax breaks on capital gains. The capital gains rate is typically 15%, but some pay 20% if you're in the highest tax bracket. You will have to pay the 25% depreciation recapture tax if you don't live in it for two of the previous five years unless you do a 1031 exchange and rent that property for at least a year before you live in it.
I lived in my OR home for 22 years, and own it out-right (no mortgage), therefore, if I sell it now I would not pay any capital gain.
But if I rent that same house out for few years then sell it, do I still have to pay 15%-20% capital gain tax?
If that is the case, perhaps I should sell my home instead of rent it out.