taxes

I reside in PA. I sold a house that was my primary residence for 3 years as well as a rental property. When selling the house the real estate attorny advised we would not owe capitol gains unless profil was$500,000 or more. our accountant has adv us that we do owe taxes on the selling of the house. Who is correct?

You could very well owe taxes on any gain your realized that is attributed to the rental use of the property. When you sell a residence that was also a rental property, you should consider the transaction as the sale of two properties. The sale of the part of your property used for business or rental is separate from the part used as a residence. For more information, see IRS Publication 17, Your Federal Income Tax, which you can download for free at the IRS site at: http://www.irs.ustreas.gov/forms_pubs/index.html