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Posted by inky dink on July 30, 2008, 11:16 pm
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I thought I would start a new thread, since this question is best not buried
in another.
If I have a rental house and have been claiming depreciation, and then stop
renting the house and use it as my personal residence for at least 2 years,
and then sell it and wish to claim the homeowners exemption:
then, is the lowered basis due to the depreciation subject to recapture, or
can that be used as part of the exemption amount?
thanks.
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Posted by joetaxpayer on July 31, 2008, 10:22 am
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Brew1 wrote:
> You will be subject to new rules if the house does not sell this
> year. As of Jan 1, 2009,
> you will have to calculate, as a percentage, the usage of the house.
> For example, if you owned
> the house for 4 years and it was a rental for 2 years, 50% of the gain
> would NOT be excluded.
This is a new one. When did this new rule come into being?
Joe
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Brew1 on July 31, 2008, 11:33 am
Please log in for more thread options > Brew1 wrote:
> > You will be subject to new rules if the house does not sell this
> > year. As of Jan 1, 2009,
> > you will have to calculate, as a percentage, the usage of the house.
> > For example, if you owned
> > the house for 4 years and it was a rental for 2 years, 50% of the gain
> > would NOT be excluded.
>
> This is a new one. When did this new rule come into being?
> Joe
>
couple of days ago, with the Housing and Recovery Act of 2008
http://activerain.com/blogsview/617643/Tax-Free-Exclusion-on
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Mark Bole on July 31, 2008, 2:00 pm
Please log in for more thread options Brew1 wrote:
> You will be subject to new rules if the house does not sell this
> year. As of Jan 1, 2009,
> you will have to calculate, as a percentage, the usage of the house.
> For example, if you owned
> the house for 4 years and it was a rental for 2 years, 50% of the gain
> would NOT be excluded.
It looks like this was proposed at one point as part of last year's
Mortgage Debt Forgiveness Relief Act, but didn't make the final version.
In addition to the exceptions previously posted, only non-qualified use
*before* use as a primary residence is ineligible for the section 121
exclusion. So if you buy the house first to live in, then move out and
rent it, that wouldn't count against you.
Also, the gain due to "recaptured" depreciation doesn't enter into the
calculation.
-Mark Bole
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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