Landlord seeks to avoid capital gains tax on rental-house sale

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DEAR BOB: I have owned a rental house many years. I would like to sell my primary residence and move into my rental property. Is it true that I can sell my rental house as my primary residence if I live in it for two years? If so, are there any restrictions? Will I be able to claim that $250,000 exemption when I sell? – Meryle H. DEAR MERYLE: If your rental house becomes your full-time principal residence for at least 24 of the 60 months before its sale, it then qualifies for the Internal Revenue Code 121 home-sale tax exemption up to $250,000 (up to $500,000 for a married couple filing jointly). Purchase Bob Bruss reports online. However, effective Oct. 22, 2004, you must have owned the house at least five years if it was acquired in an Internal Revenue Code 1031 tax-deferred exchange. Because you have owned the rental house "many years," you appear to qualify. For full details, please consult your tax adviser. WILL INHERITED HOUSE WITH STEPPED-UP BASIS INCREASE PROPERTY TAXES?...