Rental becomes primary residence and recapture of depreciation Have rented this property for four years
Moved into this rental as primary residence, eight months ago.
Some numbers:
$165,000 base
minus $25,000 depreciation claimed
$145,000 basis -CGT
House will sell for $230,000
I know I need to live in home as primary for two years to avoid CGTaxes on gain. "However, must I pay taxes on recaptured depreciation. Are there any actions I can take to delay or avoid this large tax. It appears that it will cost me somewhere around $15,000 in taxes. Is that correct??? And if I don't continue to live here for a full two years, then my total taxes would be $25,000???
No wonder people don't want to invest any longer.
Last edited by [email protected] : 03-26-2014 at 03:08 PM.
Reason: to change yellow highlighting
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