ThomasM125
Expert Alumni

Investors & landlords

You don't need to do anything with the depreciation while you own the property and aren't renting it. If and when you sell the property, the depreciation allowed during the time the property was rented would be subtracted from the cost of the property to determine the gain on the sale of it. To the extent of the depreciation, the gain on sale of the property will be treated as ordinary income, as opposed to capital gain income.

 

@ZoeCalifornia

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