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Simba77
New Member

We sold house in 2016 for 124,000. We had a home office and took some depreciation. Why does TT have that I have to pay taxes on some of the sale?

 
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jerry2000
Alumni

We sold house in 2016 for 124,000. We had a home office and took some depreciation. Why does TT have that I have to pay taxes on some of the sale?

Because the depreciation that you took gets recaptured when you sell. That means that it is taxable income and it is not part of the cap gains exclusion. It is ordinary income and fully taxable.

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jerry2000
Alumni

We sold house in 2016 for 124,000. We had a home office and took some depreciation. Why does TT have that I have to pay taxes on some of the sale?

Because the depreciation that you took gets recaptured when you sell. That means that it is taxable income and it is not part of the cap gains exclusion. It is ordinary income and fully taxable.
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