We are considering downsizing our home... it is a large home with two rentals upstairs and we live downstairs. We have lived here for 20 years and have 7 years left to depreciate the rental portion. The home is worth more than what we originally paid for it, so I am assuming we will have to pay capital gains on the 1/2 of the home we have depreciated over the years? If we fully depreciate it and stay another 7 years before we sell, what does that do to our capital gains? We live in California, but it is currently Federal Tax I am interested in learning about. (one thing at a time). We did refinance the home once to obtain a lower interest rate.
As senior citizens are there any options to avoid capital gains when we sell this property?
Any information or clues to help me understand what this may or may not cost us will be sincerely appreciated. You may need more information. Thank you for reading and considering my query.
