Depreciation Recapture when selling mid year

[Randy Smythe]

I rented my home in CA for one year (mid-year 2017) so I took half a year's depreciation last year and "planned" on taking the other half this year. I have since decided to sell my home this year because the market in my area is so good. When doing 2018 taxes do I still claim depreciation for half a year only to recapture this year with the sale of the house. Doesn't make sense to me that I would do that; shouldn't it just be a wash for 2018. Any help is appreciated. Thanks

[Sam Shueh]

Get the right answer from a CPA. State law is not the same.

[Paul Caputo]

You need to take depreciation for as long as it's a rental property. Recapture on sale is based on allowable depreciation and will be figured on that. So if you don't take the half year, the recapture will still be the same as if you did. Even though it's recaptured right away you need to take it so it's a wash, if you don't take it you'll be overpaying taxes.

[Randy Smythe]

Thanks Paul. I appreciate the response, that make complete sense. I'm going to recapture the half year no matter what, so I better claim the depreciation.