I moved out 2 years ago, and rented it out. Now, my tenants are gone, and I want to sell it. Will all the gain be tax free or will I have to recapture depreciation?
2007-06-18 05:04:19 · 4 answers · asked by lawmom 5 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you lived in the home for 2 of the 5 years immediately prior to the sale you will still qualify for the exclusion of the gain on the sale.
HOWEVER, any depreciation allowed OR ALLOWABLE must be deducted from your cost basis and is reportable as ordinary income during the year of the sale. So, yes, there will be a recapture of the depreciation allowed or allowable but the rest of the gain is eligible for the exclusion.
2007-06-18 06:56:15 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
2
2016-07-19 06:33:48 · answer #2 · answered by Vanessa 3 · 0⤊ 0⤋
What state do you live in? You can get answers from the IRS website.
2007-06-18 05:07:17 · answer #3 · answered by Solutions 2 · 0⤊ 1⤋
Yeah.
2007-06-18 05:06:53 · answer #4 · answered by DJ101 3 · 0⤊ 1⤋