Taxes and a rental I moved back into

[Jon Hollingsworth]

I have a house that was my primary residence, I moved out of it for about ten years and rented it. I moved back into it last year and my CPA says I have to pay taxes on the depreciation I took the years it was a rental. I disagreed and said I didn’t think they did depreciation recapture until I sold it and that even then if I’d lived in it two of the last five years I wouldn’t even owe that. She disagreed and said I was selling it to myself and that I had to pay taxes on it. This doesn’t even sound close to right to me. Anyone know for sure? Thanks

[Christopher Smith]

Not sure how you can sell something to yourself assuming it's been in your name the entire time. However, when you sell I believe you will be required to report the depreciation taken as a rental, the remainder should be eligible for a home sale exemption if you meet the time requirements.