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Old 12-29-2014, 05:16 PM
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Depreciation recapture after home sale

I semi-understand that the amounts I deducted for home-office depreciation are taxable after a home sale. I sold my home in 2014, and have filed home-office deductions for most years since 1991.
Does that mean I have to total *all* the depreciation amounts on form 8829 since 1991? Or is it just since mid-1997?

Thanks 1,000,000

(Either way, I have a problem: I don't know what those amounts are for some years; don't have my returns for the 90's! I don't suppose I could just call up the IRS and have them tell me the amounts on Line 41 (or whatever) of Form 8829 for the missing years?)



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Old 12-30-2014, 02:15 AM
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I semi-understand that the amounts I deducted for home-office depreciation are taxable after a home sale.===========>>>>>it depends;aslongas you take a loss on the sale of your pty, then you do not need to recapture sec 1250 unrecap depre on your return. In general when you sell the property, part of the gain is considered a recapture of depreciation deductions that were allowed or should have been allowed and claimed.

I sold my home in 2014, and have filed home-office deductions for most years since 1991.
Does that mean I have to total *all* the depreciation amounts on form 8829 since 1991? Or is it just since mid-1997?=======>>>>>>>> you must identify the total amount of depreciation you claimed on the property over all years of ownership. Recapture involves taking the prior depreciation deductions back into income, and it occurs at the sale of a property.Every year since 1991 you were depreciating the house ;that amount is subject to a 25 percent tax unless your tx bracket is 15% or lower.. The May 6, 1997, reference refers to principal residences. A loophole exists that would allow you to reoccupy that rental home for two years as your principal residence. By doing so, you can qualify the property for the $250k s single or $500k as m mfj filer. gain exclusion on the sale of a principal residence(if you sell the home as a principal residence). The law states that in this situation part of the gain attributable to depreciation after May 6, 1997, cannot be part of the $250k/$500k exclusion.so ,even if gain exclusion on the sale of the pty exceeds the amount of the unrecaptured sec 1250 depre, then sec 1250 unrecap depre is still taxable as an ordinary gain . so,the 121 exclusion does not prevent 1250 depreciation from being taxed. Assume one qualifies for the 121 exclusion, had a gain of $100K, and had taken $2K in depreciation. $98K would be excluded as ltcg and $2K still taxed as 1250 recapture.

Thanks 1,000,000

(Either way, I have a problem: I don't know what those amounts are for some years; don't have my returns for the 90's! I don't suppose I could just call up the IRS and have them tell me the amounts on Line 41 (or whatever) of Form 8829 for the missing years?)-=========>>>>>> as mentioned above.



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