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Updated 10 months ago,
Tax Q: do I need to calculate/pay recapture depreciation?
Hey - I thought I was in the clear - but perhaps not (was about to file my taxes . . ). here's the shortest version on my situation:
1) bought a house for mom in 2005 - she lived there til 2011 (not nearly long enough) did not charge rent
2) rented the house maybe 4 intermittent years between 2013 and 2018; filed taxes accordingly with 'income' and 'depreciation'
3) lived in the house between 2018 and 2023 when I sold it: almost exactly 5 years to the day
4) cash (after closing) was @ $240k
A friend suggested that I may need to repay depreciation? Looked at IRS Pub 523 - very complicated for my little brain.
Am I frantically redoing my taxes to account for depreciation or am I in the clear (I don't think I am)???
thanks so much!
Kelly
sold house in WI - live in CO
1) bought a house for mom in 2005 - she lived there til 2011 (not nearly long enough) did not charge rent
2) rented the house maybe 4 intermittent years between 2013 and 2018; filed taxes accordingly with 'income' and 'depreciation'
3) lived in the house between 2018 and 2023 when I sold it: almost exactly 5 years to the day
4) cash (after closing) was @ $240k
A friend suggested that I may need to repay depreciation? Looked at IRS Pub 523 - very complicated for my little brain.
Am I frantically redoing my taxes to account for depreciation or am I in the clear (I don't think I am)???
thanks so much!
Kelly
sold house in WI - live in CO