http://taxes.about.com/od/taxplanning/qt/home_sale_tax.htm
So I’m looking to maybe unload a small apartment I own in NYC, I’ve lived there for over 2 years. I’ll probably get around 100K more than I paid for it when I bought it about 2.5 years ago. I guess this exemption applies to me, right? Any fine print I might be missing?
You should be good, you need to live in the property 2 of the last five years. I would consult with an accountant just to make sure. Isn’t real estate investing great when you get check like that?
randyscott
Yes it is, but there are so many “gotchas” with the US tax system, I need to be 110% sure before I sell
It’s always best to go back to the source…in this case, the clowns at the IRS.
http://www.irs.gov/taxtopics/tc701.html
On the surface, it appears that you qualify…just make sure you meet all of the requirements.
Keith
Super. Yeah just heard back from my accountant, he concurs 
Thanks!
Don’t we all love the IRS. We got a letter from the IRS several weeks ago and one of the companies that rented from us issued a 1099 that listed the income we received as ‘other’ income. Basically they wanted us to pay taxes on the money we received for a second time. We requested that the company reissue the 1099 to show that it was rental income. We kind of forgot about the wrong 1099 until we got their letter. They wanted us to pay a wage income. We contacted the head accountant at the company and they are correcting the problem. The sad thing is that you know this isn’t over that quickly.
randyscott
Randyscott,
Just serves as a reminder, even if you are not paying attention to your business, the IRS is still watching.
You qualify.
We got the corrected 1099 yesterday and a copy goes to the IRS tomorrow.
randyscott
Randyscott,
We just had the same wake-up call from our CPA who has just done our taxes, a little late as usual.
Several 1099’s we received were marked wrong–“Other Income”! We are going to be getting new ones re-issued, you bet.
Otherwise we, too, would owe tax on that as wages income. See how valuable this site is? We’re going to be scrutinizing all those new 1099’s in January.
Furnishedowner