Recapturing depreciation on sale of primary res - Posted by HR
Posted by HR on February 12, 2002 at 14:37:48:
Hope all is well with you. I’m looking forward to seeing you at the convention this year. Hope you have had a good year. Mine is going well so far.
My question pertains to the rules governing the sale of one’s personal residence. I believe I know the answer, but I thought I’d verify it anyway.
In 1997, I bought my personal residence, a duplex. That year, I rented the first floor and depreciated the corresponding amount on my taxes. I have had a family member living with us ever since 1999, paying no rental income.
When I sell this home later this month, do I have to recapture the depreciation I took in 1997 and 1998? Does my ownership of it as a sfr for over three years “wipe out” the prior use so I can take advantage of the 2 year rule and pay no taxes on its sale?
It’s appreciated about 100k, and I’ve alloted 40% of the value to the rental unit. It has been one unit as far as I’m concerned (with no income or expenses) since 1998. That’s three years ago. I think I know the answer. But I’m hoping otherwise.