thanks.  Not the answer I wanted to hear of course but it was the answer that I thought I would get Thanks for confirming ... View more

okay  thanks ... View more

it makes sense. I've owned the building 27 years   Big gain.  it was owner occupied first, then not owner occupied and just this year owner occupied again.  When it was first owner occupied I didn't understand about depreciation and did not take it. But I assume that when I sell it I calculate what I should have taken as depreciation, even if I did not take it, with the understanding that some years it  will be 100% and other year it will be 67% ... View more

sorry to be a bother here but this is the confusing part"  here will be "Unrecaptured Section 1250 Gain" from the depreciation for all three units when it is sold.  There won't be any additional depreciation on your personal unit once it became a non-rental unit."  When the building is sold , I pay recapture gain on the depreciation of the entire building since purchase OR I figure out which years one unit was owner occupied and pay recapture on that unit only for the years it was not owner occupied?  Sale may soon as I am retiring this year ... View more

thanks   This makes sense. I have owned the property for 18 years  So when you say 2/3 and 1/3 of basis, this means I am still going back to the original basis (even though I have already taken depreciation)  and  Turbo tax will recalculate as if it had been two properties all along correct?   And regarding your selling comment, my understanding is that when I sell I would pay depreciation recapture on all 3 units from the day I bought the building ( regardless of whether I have taken depreciation of not)  Is this also correct? Thanks for your help ... View more