@dp1218 , if he took the standard amount based on square footage (exclusively and routinely used for business), then it would hard to find the allowable depreciation embedded into it., But note that depreciation lowers the basis ( Acquistion cost plus cost of any improvements) is reduced by depreciation allowed and thus increases the profit ( may push you past the untaxed profit margin of $250,000). Also any accumulated depreciation causing the profit, needs to be taxed at ordinary marginal rate not at capital gains rate. Therefore it is a good thing that he used the standard rate rather than actual
I am sure you are aware that for the gain exclusion ( from taxes ), there are a few requirements : (a) must not have used this exclusion in the last two years; (b) must have used this property as main residence for a total 760 days within the last five years ( from the date of sale ) and (c) must have owned the property for at least two years.
Does this make sense ?
Is there more I can do for you ?
