Steven Eidmann
New member
Rental is in Colorado, I am a CA resident.
in 2010 my wife and I returned to CA from CO. Kept the house we had purchased in 2005 due to slow sales market. House has been a rental ever since. We now think we may not retire there. Paid 500k in 2005, current house value is about 850k based on comp. We file CO tax every year, pay zero due to expenses and depreciation. Don't really make anything much in cash flow, except to pay expenses.
If we were to move back into house for the 2 our of 5 year rule, then sell, can we expect some tax advantages for it becoming our main residence again vs just selling it as a rental and getting hit for income tax ect?
Please advise best route.
in 2010 my wife and I returned to CA from CO. Kept the house we had purchased in 2005 due to slow sales market. House has been a rental ever since. We now think we may not retire there. Paid 500k in 2005, current house value is about 850k based on comp. We file CO tax every year, pay zero due to expenses and depreciation. Don't really make anything much in cash flow, except to pay expenses.
If we were to move back into house for the 2 our of 5 year rule, then sell, can we expect some tax advantages for it becoming our main residence again vs just selling it as a rental and getting hit for income tax ect?
Please advise best route.