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Investors & landlords
@wleuter wrote:I want to know if when selling my house, the buyer does not want me to keep any furniture inside, how much gain will I get and have to pay tax for?
Is the gain the total depreciated number of the furniture?
I'm not sure I understand the question in the sense of precisely what happens with respect to the furniture if the buyer (of the house) does not want to keep it.
Do you have to move it out of the house when you sell (because the buyer doesn't want it)? If so, do you scrap it? Do you convert it to personal use? Do you sell it to a third party (i.e., a party other than the buyer of the house)?
If the furniture is scrapped (you get $0 for it), then there is no gain, no recapture. If the furniture is converted to personal use, there is also no gain nor recapture (unless and until you sell it to another party). If the furniture is immediately sold to another party, then the gain (which is 100% Section 1245 gain) will be taxable to the extent the sales price is more than $0 (which is your adjusted basis).