capital gains on real estate

[Abbey Rose]

Is a bed and breakfast considered a business in the sense that it would or would not leave on liable for capital gains tax should the property be sold as a home? The state is Oregon, however, I doubt that makes a difference.

 

[ALawyer]

If it were a home that you owned for 2 or more years there would be a $250,000 exclusion of capital gain; as a business there is nmo exclusion.Ask your accountnant, but my sense is that converting the property to business use and depreciating it would cause it to have split capital gains treatment.