We purchased a home (main residence) in 2006 and lived in it until 2010 when the military moved us to another assignment. Because of the crash in housing values we could not sell it, so we held it and used it as a rental property until early 2021 when we sold it. I am trying to figure out the tax implications based on several factors.
- We sold the property for slightly less than the original 2010 purchase price. (349k v. 345k)
- We did make money on the sale due to the balance on the mortgage. ($36k)
- We were depreciating the property over the time of the rental. ($96k total depreciation according to my Turbo Tax)
- We have a total Deductible rental real estate loss on $84k (according to my Turbo Tax)
So while I have always used Turbo Tax, since this seems fairly complicated I am looking for outside advice as I work my way through the software input.
Given that situation, which of those items above would be factors in determining the tax implications?
Thanks for any advice oe assistance.