My dad is planning on gifting his rental property to me and my brother 50-50 ownership. Our plan is to move into the property for 2 years and then sell the property. A few questions. As we are both married and we are going to live in the house for 2 years, do we both qualify for the FULL $500k exclusion eac OR will we be subjected to the non qualified use rule for the years the property was rented prior to us receiving it as a gift? Or do the years prior to receiving as a gift not count as that relates to a different owner? Also, when we sell will we be subjected to any depreciation recaptured that occurred from depreciation claimed prior to us receiving the property as a gift??
