Can Form 4797 Guidelines 2022-2023

Instructions and Help about Can Form 4797 Guidelines

Hey guys Toby math is here with interesting business advisors a question I get quite often is what to do when I sell my house to make sure that I pay no tax and that one's pretty easy there's something called a 121 exclusion which most people know that you have to have lived in the house 24 of the previous 60 months prior to selling it and you have to pass the ownership test you have to own it when you sell it and so in English means that if I lived in the house it's my one of my primary residence or my personal residence and that and I had 24 months during that period of time and it qualifies that I could qualify for as a single person a $250,000 exclusion against the game the capital gains not depreciation recapture that's important against the game on the on the home or if I'm mailing or married filing jointly it's 500,000 so that's a big huge capital gains exclusion that you definitely want to capture now here's what sometimes happens somebody purchases a house the real estate market runs up over the years maybe they've been in it for 15 years 20 years and they want to sell it and go move someplace else and they say hey how do I avoid the game sometimes they'll have a twist they say what if I want to keep it and I want to make it into a rental then what do I then do I just put it into a rental and almost the time practitioners are gonna say yes and they just left a ton of money on the counter there and they passed up the chance to use their 121 exclusion here's why that 24 of 60...