We converted one of our homes we purchased as a primary residence because we couldn't get it sold at the time. We didn't intend to hold onto it for as long as we did but such is life.
If I remember correctly (it's been a while so ask a CPA), you can avoid the CG tax if the home was your primary residence for 2 of the last 5 years
You take the depreciation every year. When you go to sell it the depreciation (whether you take it or not) is recaptured in your taxes, so our CPA told us to take it because otherwise you are loosing out.
To avoid capital gains when you sell you can do a 1031 exchange. I've been through two of these, one I assisted at work with commercial the other with my parents and was residential. There are rules and regulations that you follow.
Hope this is helpful
If I remember correctly (it's been a while so ask a CPA), you can avoid the CG tax if the home was your primary residence for 2 of the last 5 years
You take the depreciation every year. When you go to sell it the depreciation (whether you take it or not) is recaptured in your taxes, so our CPA told us to take it because otherwise you are loosing out.
To avoid capital gains when you sell you can do a 1031 exchange. I've been through two of these, one I assisted at work with commercial the other with my parents and was residential. There are rules and regulations that you follow.
Hope this is helpful