Posted by John K Haslach, CPA, MST on July 04, 2004 at 04:57:26:
The depreciation you claimed is subject to recapture at a 25% tax rate on real property and as ordinary income on personal property.
2nd home tax law - Posted by dorrie fisher
Posted by dorrie fisher on July 01, 2004 at 21:32:23:
I rent my 2nd home to my son, I would like to sell this home, but I’m not sure about capital gains. I’ve never lived in this home, but was told that if a family member rents it, its considered the same as if I’ve lived in it, I’ve claimed this home as a loss and know I would have to replay the losses claimed. What is the legal answer. Thank You, Dorrie Fisher
Re: 2nd home tax law - Posted by Diane (TX)
Posted by Diane (TX) on July 03, 2004 at 10:41:23:
You’ve never lived in this home, so it doesn’t qualify for the residence sale exclusion. (And no, the fact that your son lives there doesn’t mean that you can claim his period of residence as your own.) You would treat this a a normal rental property sale. Take your sales price, and subtract the following: your purchase price, any major improvements, and depreciation you’ve claimed. The amount left over is your gain or loss. It’s treated as long-term capital gain - 15% tax rate - if you’ve owned for over a year.