Question

I have a capital gains rental property question. If I sold a home that I rent out, am I subject to rental capital gains on the sale?

Answer

Yes. Regarding capital gains rental property, you are liable for rental capital gains. You can only exclude capital gains from the sale of your main home.

Any gain on the sale of rental real estate is subject to rental capital gains tax. However, unlike with your personal home, you can claim a loss on the sale of rental property.

Related Topics

Related Resources

Reporting Babysitting Income

Learn more about reporting babysitting income on your federal taxes with help from the tax experts at H&R Block.

What Is Cryptocurrency?

What is Cryptocurrency? Bitcoin, Litecoin, and the like leave many wondering how to classify this new form of investment. Find the answer at H&R Block.

Garage Sale Money and Capital Gains: What You Should Report to the IRS

Do capital gains apply to garage sale money? The answer depends on a number of factors. Learn more at H&R Block.

Capital Gains Tax On Real Estate

Learn more about capital gains tax on real estate with advice from the tax experts at H&R Block.