Updated almost 7 years ago on .
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Sale of Rental after 27.5 Depreciation
I have a home used as a Rent to Own. Yhe renter now wanys to try and buy the home. On my taxes, i have claimed the rental payments as income, and also depreciated the 27.5 years for the past 2 years. This may be the 3rd year claimed. The question is. The sales price will be higher than value. So what will i need to factor in when selling the home. Typically it's value is around $90k-$100k, however, purchase price was $65k. I am offered to the renter per his own agreement a price of $75. So $10k above.
Would this depriciation be figured in at time of sale, or at my personal tax time? (I beleive on my taxes that following year) so how much would I be taxed on the sale ???
I don't care about making profit, however, profit would be nice. Just dont want to owe or be in the hole after the sale, just to help a family out !