rental house converted to residence, how to recapture depreciation on sale

Discussion in 'Tax' started by Sherman, Apr 30, 2004.

  1. Sherman

    Sherman Guest

    How to "suspend" depreciation on rental property that has
    been converted to primary residence and will not be sold for
    at least two years?

    How do I "suspend " the yearly depreciation calculations in
    Schedule "E" and save the accumulated depreciation for use
    when the property is sold?

    (I have been using Turbo Tax Pro, Schedule "E" to track
    yearly depreciation on a rental property. In July 2003 I
    converted the rental property to my primary residence. It
    will be at least two years, August 2005, before I sell the
    property)

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    Sherman, Apr 30, 2004
    #1
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  2. Sherman

    Mike Lewis Guest

    "Sherman" <> wrote:

    > How to "suspend" depreciation on rental property that has
    > been converted to primary residence and will not be sold for
    > at least two years?
    >
    > How do I "suspend " the yearly depreciation calculations in
    > Schedule "E" and save the accumulated depreciation for use
    > when the property is sold?
    >
    > (I have been using Turbo Tax Pro, Schedule "E" to track
    > yearly depreciation on a rental property. In July 2003 I
    > converted the rental property to my primary residence. It
    > will be at least two years, August 2005, before I sell the
    > property)


    On the date you remove the property from being used for
    rental, depreciation stops. When you sell such property, you
    must recapture as ordinary income the depreciation from a
    specific day in May 1997 thru the date of final rental use.

    Mike Lewis, CPA

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    << The Charter and the Guidelines for submitting >>
    << messages to this newsgroup are at www.asktax.org >>
    << ------------------------------------------------->>
     
    Mike Lewis, May 3, 2004
    #2
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