MUST I take depreciation on the portion of my home that is an in-law apartment/ADU that I am renting?

If I don't want to take depreciation that will have to be recaptured in the future if/when we sell our home, do I have to?

Coleen3
Intuit Alumni

Investors & landlords

Unfortunately, if it is a true rental, you must deduct depreciation. If you are renting to a friend or relative at below market amounts, it is a not for profit and you can't deduct expenses.

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