The days when you could convert your rental property or vacation home to a principal residence and then use the full $250,000/$500,000 home-sale exclusion to avoid taxes are gone.
 
Here’s how the $250,000/$500,000 exclusion works today. You must divide your period of home ownership into two categories—qualified and nonqualified use:

•  Qualified use means the time you or your spouse uses the home as your principal residence. 
• Nonqualified use means any time on January 1, 2009, or later in which neither you nor your spouse (or your former spouse) uses the property as a primary residence.

 
You allocate gain on the sale of your home between the periods of qualified and nonqualified use, and ​the gain allocated to nonqualified use doesn’t qualify for the $250,000/$500,000 home-sale exclusion.
 
You have one important exception to the nonqualified use definition: nonqualified use does not include rental use during the five-year period that’s after the last date you or your spouse used the property as your principal residence.
 
In other words, if you live in your principal residence for two years or more and then rent it out for three years or less, the rental period is not a “period of nonqualified use,” and you qualify for the $250,000/$500,000 home-sale exclusion.

Today my journey on helping small business owners help save more on taxes begins. If you feel tired of paying too much in taxes, you're not alone. Most of the time, we don't even know that we're doing so, we just feel it inside, and sometimes it hurts.
 
Although your situation might be different, you might still benefit from my tax planning help.

If you are a small business owner, you can't afford to miss the benefits and opportunities that I may find. If you fall into one of these categories, let me help you.

• real estate investors
• medical practitioners
• high net worth individuals

As a Certified Tax Coach, I focus on proactive tax strategies to save you money before April 15. I don't just record history, I help you write it. Also I have completed special training, along with ongoing continuing education requirements. I adhere to the American Institute of Certified Tax Coaches Code of Ethics.

If you want to save every dollar the law allows, you have to act now. You need a plan that takes advantage of every legal deductions, credits, loopholes, and strategies available.

Let me help you.

 
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