topic Do I need to recapture home office depreciation taken prior to May 6, 1997? If so, what is the significance of this date? in Business & farm

Do I need to recapture home office depreciation taken prior to May 6, 1997? If so, what is the significance of this date?

decogeek — Sat, 27 Mar 2021 21:12:55 GMT

Re: Do I need to recapture home office depreciation taken prior to May 6, 1997? If so, what is the significance of this date?

decogeek — Sat, 27 Mar 2021 21:20:53 GMT

Re: Do I need to recapture home office depreciation taken prior to May 6, 1997? If so, what is the significance of this date?

Carl — Sat, 27 Mar 2021 22:09:34 GMT

I can't answer this with any degree of certainty. I also think that there's something about depreciation recapture on property placed in service before 1987 also. But don't know any of the particulars on that. A preliminary search of Pub 523 and 527 doesn't cause anything to "jump out" at me either.

Re: Do I need to recapture home office depreciation taken prior to May 6, 1997? If so, what is the significance of this date?

AmeliesUncle — Sat, 27 Mar 2021 22:13:36 GMT

That is the date the law changed so that you can use the $250,000/$500,000 exclusion on the sale of your Principal Residence.

Depreciation before that date is eligible to be covered by the $250,000/$500,000 exclusion. Depreciation after that date is not eligible to be covered by that provision.

Re: Do I need to recapture home office depreciation taken prior to May 6, 1997? If so, what is the significance of this date?

decogeek — Sat, 27 Mar 2021 22:31:04 GMT

So, does the pre 1997 depreciation have to be recaptured?