The ADU was a converted garage and a separate building. I figured out that it was 24% of the sqft of the whole house. I did amortize it for 2021. And will amortize it for part of 2022. When I do my taxes next year for 2023 I will need to pay capital gains for the sale of my property. Do I need to pay money on 24% of the profit? Or since I only rented it for 1.5 years of the 4.5 years that I owned the property, would I take ⅓ of the profit times 24% and claim that as income to pay tax on?
I stopped renting the ADU Nov 1, 2022 and sold Feb1, 2023.
Thanks
