Hi @Ryan Bakke, CPA , a few months ago I reached out for your opinion on selling a property near Long Beach, CA. I was wondering if you can help me figure out how much in capital gains tax I'd anticipate if I sell outside of the section 121 exclusion. We are in the highest tax bracket, filing married jointly. Home bought: $920,000. Proposed home sale: $1.1 M. We moved in March 2021. Moved out May 2024. June 2024 we began renting out to an LTR tenant. Thinking of selling either summer 2027 or summer 2028 (when it's not such a buyer's market). My question: Since the 2 years for section 121 does not need to be consecutive, can I hypothetically convert it to an STR in Jan 2027 -July2027 (and depreciate what I could, cost seg it..etc), then move in myself July 2027-July 2028 and still claim the section 121 exclusion in 2028? Given the info, what do you think my capital tax will be IF i sell outside their "2 year" rule? Thank you!

Which one would you pick & why?

Very busy professional full time job and do not qualify for REPs. Already have 2 STR self managed. 1 LTR. This question is about the LTR. 1) in a highly desired neighborhood of Long Beach, CA 2) potential for increased rent with LA Olympics in 2028 3) At the moment, it cash flows $1-2K a month. Property taxes remain a burden ($13K/year). In the end, $12k isn't that much of a gain for us when we think about home maintenance in the future (an older home) 4) Cap gains would be quite a bit. Would you sell and use the money to invest in the market, or keep it? We've considered converting it to an STR as well, but we are just a husband and wife team and are stretched thin. @Ryan Bakke, CPA

Loved this quick video from Ryan https://www.skool.com/taxes/classroom/2111abca?md=3011c1bc61d94c4d890b907b23190466 Though just curious - I'm in a high tax bracket but husband bought a low cost home before we met (like 250K in California). We're converting it from LTR to STR this year. Do you think its worth doing a "DIY" cost seg or big big with a virtual seg to try to get more bang? And when you say "DIY re-cost seg", was there a specific company you recommend? @Ryan Bakke, CPA

@Ryan Bakke, CPA where would I find the calculator referenced in the 7 Steps to Financial Freedom class?