I have a question for this upcoming tax season 2023. My main residency is in CO. I have rental property "Condo" in Florida. For the last 15 years, the Condo was rental out 365 days a year. In 2023, me and my wife decided we want convert the Condo back to personal use. We want to escape the Colorado winters and head to Florida. The 7 months in 2023 we rented out the Condo so we will be claiming the income and expenses on our Schedule E.
August through December 2023 and moving forward this will be used for our personal use - vacation home. My question is would I recapture the depreciation in 2023 for all the years we took that expense or does that happen when I sell the condo down the road? Also, the tenants left the place in bad shape after they moved out - my question are the repairs or renovations for the damages they did during their moving out, is that a tax deduction on the schedule E or would we put that cost towards our cost basis when we go to sell the Condo down the road?
P.S. We took pictures of the damages for our records incase someone questions it.
We are just trying to prepare ourselves.
thank you
