Hi All,
Need some help with the below situation.
Bought a home 20 yrs back, and it was rented for 3 yrs between those 10 yrs. i.e. years 1,2 and 3 personal home, years 4,5,6 it was rental, year 7 and 8 was vacant but CPA claimed depreciation, then years 9 to 20 personal home (no depreciation claimed in taxes). Then Sold it last year 2023.
I am now filing taxes (I am using turbo tax) and I have a few questions:
- do I file this as a sale of personal home or a mix of personal and business property? (TT has both options)
- there was depreciation claimed in returns for years 4,5,6,7 and 8. So, how do I recapture this?
- year 7 and 8 nobody lived but in the tax the CPA claimed depreciation. Do I still recapture this? The thing to note was that this depreciation didn't reduce my taxes. The tax form says final deduction allowed as 0.
- This was a foreign home and I paid taxes on the sale. In form 1116 how do I enter this deduction? typically it asks for income and tax paid. Here is the income the sale price or the gains?
- Apart from improvement costs and selling cost, are there any other deductions I can take now? (e.g. prior year maintenance costs during renting years?)
Any help appreciated.
Thank you.
