- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Other financial discussions
Below is a link to a conversation that seems to mirror your situation.
If only you claimed the rental income and expenses, only you would claim the "Depreciation Recapture".
Capital Gains is another issue.
HOW you added her matters. Was she named as a "remainder" where she would not claim any of the gain.
If as a second owner, I think technically you would claim the capital gain based on your basis (cost) up to the point where you added your daughter, then half the capital gain attributed to the last 3 years. Your daughter would then claim the remaining gain which should reflect half the gain from the time she became part owner until you sold. In this case you would need to estimate the value of the property when you added your daughter as an owner.
One answer in the linked conversation suggest the person handling the rental claims everything.
If still unsure, consult a local real estate attorney.
**Mark the post that answers your question by clicking on "Mark as Best Answer"