[Capital Gains]

HI TaxSmith,

I did not make a claim for the disposition of the principal residence or any of the above you mention. I filed my taxes yearly and claimed the rent I received as income.

I'm not sure what my next steps are.

 

[Capital Gains]

I was hoping someone can help me with capital gains.

I purchased a house in 2007 for roughly $145K. I lived in this house until I bought another.

In 2013, I purchased the other house and decided to rent the house I purchased in 2007.

In 2013, I got the rental property appraised for $270k and started to rent the house.

I did this for 8 years until 2021 when I sold the rental property for $245k.

Do I pay capital gains on the $100k or do the appraisal offset this?

Thank you for your input.