QUESTION
What are the tax considerations when selling a renter-occupied home vs. an owner-occupied home?
Asked on Jul 08th, 2013 on Residential Real Estate - Colorado
More details to this question:
We plan to sell our Colorado home, which is currently occupied by a renter while we temporarily relocated to another state, where we rent an apartment. Prior to our move out of state we lived in the house for nearly 8 years. It is our only property. The lease ends in the fall, but we would like to sell sooner. Are the proceeds from the sale taxed differently if we sell while it is rented out, compared with selling it once we re-occupy it ourselves?
1 ANSWER
3 Awards
Whether or not the home is under lease at the time of the sale will not effect the tax status. However, selling the home during the course of the lease may be difficult without tenant cooperation and/or buyer's understanding and willingness to take the property subject to the lease.
So long as you can claim the home as your primary residence for 3 of the last 5 years at the time of the sale it will be taxed as the sale of your primary residence.
Answered on Jul 08th, 2013 at 3:33 PM
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