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Updated about 4 years ago on . Most recent reply

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Grant Winslow
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How do I depreciate property when primary residence in between?

Grant Winslow
Posted

I purchased an investment property in 2011 which was rented out through 2016 and then became my primary residence for the past 4 years. I would like to place the property back into service in 2021 with the idea of eventually doing a 1031 exchange for another property with the intent of it eventually becoming my primary residence. I'm not sure what steps to take regarding depreciation. Do I continue with the original depreciation schedule for my 2021 tax filing, in which the property will be year 6 of the 27.5 year depreciation schedule, or do I need to establish a new depreciation schedule?

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