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Updated 6 months ago,
Moved back into my rental property. Will this help with depreciation recapture?
I have a property that I used as a rental property for about 18 years where I claimed depreciation year after year. Fast forward to 2022 I'm awarded this property in a divorce and now it's my primary residence when I'm claiming primary residence. I'm thinking about selling in the next year and I have read that if I now live in the property for the last 2 of 5 years that I won't pay taxes on the first $250,000. In this scenario is this correct? If so, will there be a recapture higher rate on profit made above that amount?
Any insight would be greatly appreciated.