Depreciation / Property Rental then Sale

[rjwoodho]

Hi community.

1. I currently live in an apartment and have lived in it as my primary residence for the last 5 years

2. I would like to rent out my apartment and claim depreciation, whilst simultaneously buying a home in the suburbs

3. I will not rent out the apartment for more than 2 years, and after that point, I will sell the apartment

Question. As the apartment would have been my primary residence for 2 out of the last 5 years, am I still waived from the capital gains taxation if the gain is below 250k?

Question. I assume I will have to pay Depreciation Recapture Tax on the Depreciation I claimed. Would I be taxed on up to a maximum rate of 25% of the total depreciation claimed?

Ultimately I want to offset the income from the rental with depreciation on an annual basis. Any help here would be great thank you very much!!!

[Mike9241]

as the term ids generally used you don't own an apartment you rent them so clarify where you're living and your ownership therein. if you don't own it you can't depreciate it and can't sell it except for any furniture and appliance that you paid for and are not permanently attached.