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Old 04-12-2013, 02:38 PM
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primary residence partially rented, depreciation?

I rented out part of my primary residence for the first 8 months of 2012. I am since using it completely. For 2011, i partially rented it for the whole year and depreciated that part for the whole year. Do i depreciate only for 8 months or the full 12 months, even if i plan to rent it partially somtime in the future.
How will this impact recapture while selling?



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Old 04-12-2013, 11:43 PM
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“Do i depreciate only for 8 months or the full 12 months, even if i plan to rent it partially somtime in the future. “===========>For 2011, you depreciated the pty for the whole year for that part of the pty; and you , as you said, depreciated it for 8 months during the year of 2012.As long as you use the pty for rental purposes, you can depreciate it( as long as your pty generates sufficient income to deduct it).
“How will this impact recapture while selling?”========>The unrecaptured depre taken previously ‘d reduce your LTCG on the disposition of the sec 1231 rental pty( If you sell the rental pty and make a profit) and would be taxed as ordinary income taxed at 25% UNLESS your marginal tax rate is lower than 25%.



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Old 04-15-2013, 06:46 PM
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Thanks
--MC



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