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Capital gains and depreciation recapture

My daughter and I co own a townhouse since 2004. My daughter used it as her principal residence.and moved out in 2014. She rented out the property and claimed both rental income and depreciation recapture in her tax returns from 2014-2023. We had disagreement and the property was quit claim to me as the sole owner in January 2024. I agreed to pay the depreciation recapture due upon the sale of the property. I sold the property April 2024. How do I calculate and pay the depreciation recapture and capital gains?

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Capital gains and depreciation recapture

It seems you are saying only she reported the rental.  As a coowner you should have been reportying your share. "  She rented out the property and claimed both rental income and depreciation recapture".  depreciation recapture is only reported in a taxable transaction so do you really mean she took deprecition.   

 

Who paid for the proeprty when it was bought? this affects your tax basis. along with any subssequent improvements. When she quit clained the property to you her basis became yours along with any deprecition she took.

 

your depreciation recapture is the higher of all the deprecition taken by both of you or the amount both of you should have taken.

 

I think best you consult with a tax professional

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