Who pays rental property depreciation recapture after a divorce?

Forum|Forum|7 years ago
June 4, 2019
2 replies
56 views

I divorced in 2018 and began using a rental property we jointly owned as my primary residence. It was transferred to me via a quit claim deed as part of the divorce settlement. One question is whether or not the transfer of title to me triggers depreciation capture? (I don't think so, but worth asking). Second question is, when I do sell the property some years down the road, who is responsible for the taxes due on depreciation recapture...me or both me and my ex?

Best answer by Critter

One question is whether or not the transfer of title to me triggers depreciation capture? (I don't think so, but worth asking). No it does not ... but you will take the property out of service to stop the depreciation.

Second question is, when I do sell the property some years down the road, who is responsible for the taxes due on depreciation recapture...me or both me and my ex? The property is in your name only now so when you sell it you assume all the taxes on the sale ... if you can be reimbursed for some of the taxes this was a divorce lawyer discussion and should have been decided already.

macuser_22

Alumni - Champ

Who pays is a legal question, not a tax question - ask your divorce attorney.
Who pays tax after divorce is something that should be spelled out in the divorce decree.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**