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Investors & landlords
It is hard to say yes or no without more information.
Basically, when you convert a home from personal to rental use, your basis for depreciation is the lower of the adjusted basis or Fair Market Value on the date of conversion. You will depreciate the property as long as it is a rental. For you, that would have been from years 2009-2017. At the sale, you will recapture the deprecation. It is taxed as ordinary income. If you have a gain, apart from the depreciation amount, it is taxed at capital gains rates. You did not live in the house for two out of five years prior to the sale to be able to exclude any capital gain.
March 20, 2020
8:12 AM