I am selling a townhouse right now that I lived in for 2.5 years 3/97-8/99, and have rented out since (I own no other property and currently rent). I stand to make a pretty decent profit.You can see my question below and a response I received on another board. Can anyone provide further clarification? Maybe a definition of recaptured depreciation? I assume given my scenario, I won't be taxed on the gains except the amount claimed as depreciation (i.e. I will have to pay taxes on the depreciation claimed $10,000 (.25) = $2500)I understand that I won't be taxed on capital gains (up to $250,000, since I am single) I make since I did live there 2 of the last 5 but I will be taxed on the depreciation I claimed the past 2 years.Sounds right to me (provided you haven't claimed another "principal residence" capital gain exemption in the 48 months preceeding your home sale). Except...I claimed around $5000 each year (for 2000/2001) depreciation. The depreciated amount (but not other deductions) will be recaptured when you sell...I understand that the recaptured depreciation is taxed at 25%.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra