Question on Capital Gain Property Sales Tax for Airbnb Properties- Oakland, CA, USA

[Diane222]

I'm currently considering selling my condo, purchased in Dec 2014 once I could claim I have use my property as residential use for myself over 2 years. In the past 2.5 years, I have airbnb'ed my place out for about 50% of the time. In 2015, I believe the City of Oakland and began to enforce all Airbnb properties have to be registered as rental properties. I have done so to comply yet continue to use the address as my primary address and stay in the property for 50% of the remaining time. 

My question is - how many days will I be able to claim the property as residential use? 50% of the time for the entire time period? 50% of the time after the policy change? 

Thanks!

Best,

Diane 

[Alison1]

Look to the IRS code on vacation rentals. It will answer your questions.

[David-J0]

always follow local irs laws 

of course.  but it depends on what you want to use the money for.   I am a mortgage lender so I am just thinking from that sthat if you want to buy another property you want to show as much income as possible and therefore do the best you can within your limits to have the most income showing if you were going to finance another property

[Donna240]

I once had a conversation with our accountant about my husband having his business office in our home. We discussed the advantages of writing off a portion of the home for a business expense. He told me that we should not sell our home until 2 years after we stopped writing off the office space. So even if IRS doesn't address short term rentals specifically, it is a business and the same rules may apply. Did you take a "business expense" write off? An acccountant or E.A. (enrolled agent) can help out with an answer.