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terri9208
New Member

Sale of primary residence = Question "Did you use this home for anything other than primary home? = No, what is the answer for Depreciation after May 6, 1997?

Although depreciation is taken off the base Cost, and the gain is exempt from taxes, do I report the depreciation again under "Depriciation after May 6, 1997"?
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2 Replies
PatriciaV
Expert Alumni

Sale of primary residence = Question "Did you use this home for anything other than primary home? = No, what is the answer for Depreciation after May 6, 1997?

If you did not use this property for anything other than your primary residence, and you never claimed a Home Office Deduction, there would be zero depreciation claimed during the time you owned the property.

If you did claim depreciation on the property, enter the total to answer the question "Depreciation after May 6, 1997."

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darcykl
Returning Member

Sale of primary residence = Question "Did you use this home for anything other than primary home? = No, what is the answer for Depreciation after May 6, 1997?

I'm still confused about this. I bought my home in 2014 and rented out part of it. Took depreciation on the rented part of the home and assets every year until I sold it in 2020. I already entered the depreciation for the rental part under the Easy Guide section for calculating the adjusted cost basis. When I enter it again on this question about depreciation after May 6, 1997, it suddenly tells me I'm not eligible for the gain exclusion. But when I entered it in the Easy Guide only, I am eligible. 

 

I know I'm eligible for the exclusion based on the IRS instructions (which don't say anything about 1997, btw). And of course, if I bought the house in 2014, all of the depreciation I took would be after 1997. Does this mean anyone who took depreciation for any house bought in the last 30 years doesn't qualify for the exclusion? That doesn't make any sense.

On another thread, the person asked if this question applied to them, since they bought the house after 1997, and they were told that it didn't apply to them, ignore it. So I'm getting different answers in different threads. 

 

Grateful for any clarification asap. Many thanks!

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