Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I was just reading the "Fools" article on Making Home Sale Capiital Gains Disappear, in the example under Rental Conversion, the fool talks about recapture of depreciation and what is forgiven for any depreciation taken prior to May 6, 1997. My question is if I sell the rental property without living in it and NOT claiming it as a primary residence and with out claiming the "gain exclusion", will the amount I depreciated prior to 1997 be also forgiven and what would the basis of the rental be at the sale of the rental? Thank you in advance.

Read the instructs for form 4797 Sale of Business Property. You'll probably be hit with a 1250 gain, which is taxes as ordinary tax rates. The rest will be at capital gains rate. Its a bit tricky, but you can finish the form. Good luck.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.