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About John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Rental of a home and IRS home exemption
Expert: John Stancil, CPA
Date: 10/12/2008
Subject: Rental of a home and IRS home exemption
Question
My 84 year mom has owned her house for 40 years. During the last 2 years she rented her home out while she moved closer to her children. She is ready to sell and wants to know how long she would have to live at the house to reclaim the IRS home exemption. What specifics does the IRS want verified to insure the requirements are met by a person. My mom winters in the south, and then stays with various kids during other parts of the year, and really doesn't have a single primary address. Thank You!
Answer
Jonathan,
Thanks for your question.
She would have to live in the house as her principal residence for 24 of the past 60 months to be able to exclude gain on the sale of her house.
However, she will owe tax on the gain represented by depreciation allowed during the rental period. In other words, if her gain exceeds the amount of depreciation allowed during the rental period she will ow tax on the amount of depreciation claimed, up to the amount of gain.
Hope this help.
John Stancil, CPA
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