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[[if sell the property I know I have to recapture the depreciation @ normal tax rates
but what are my other tax consequences?
How long do I have to live in the property before it becomes "my personal residence?"
If I sell the property for $86000, for example, would I be able to avoid capital gains tax on the
$10,000 gain since moving in, or the whole $30,000 gain since I purchased the property, as a result
of the new tax rules for selling personal residences. Thanks, Dan]]

Now that you have moved back into the property as your principal residence, you may NOT have to recapture all of the depreciation...only that depreciation taken after May 6, 1997.

And if you meet the "own and use" 2-year rules, you may also qualify for the universal exclusion of the gain up to $250k for a single person or $500k for a married person. And if you otherwise qualify, you would qualify for the total gain.

Check out my post on the home sale exclusion in the Taxes FAQ area in the "archived" tax articles.

TMF Taxes

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area ( and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area ( Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (
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