Live in the home for 2 years. You can also sell the home and buy another rental property. Its called a like exchange. Those are the only two Ways that you can get out of paying capital gains. If you don't want to do that make sure you add everything you have ever done to the rental property in the last 8 years to the basis of the house. (landscaping,repairs,trips to check on the property and to sell etc.)After divorce,my ex got principal residence %26amp; I got secondary home(rental for 8 yrs).How to sell without tax?
Buy another home within 2 years and you will avoid the capital gains tax.
the normal rule is live in the property for 24 out of the last 60 months as your principal residence. sounds like you got a raw deal. you could do a 1231 exchange for another trade or business property, thereby deferring the gain. or you have to move in for 2 years.
sounds like you did not have your own lawyer or you had a bad one.
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