I have owned, and been the sole resident in, my house for almost two years. I'm going to get a roommate (23 months into owning the home). I was wondering, when it comes time to sell in a year or two, will I have to pay capital gains tax on the entire profit or just on the portion I rented out?
You typically would need to pay capital gains tax on just the portion that is rented out.
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Answered by: Colleen S. Krcelich, CPA, is an adjunct professor at Northampton Community College in Bethlehem, Pa.