taxcurious
Member
What is the name of your state? CO
What exactly is the rule for depreciation recapture in the following scenario:
taxpayer lived in the home 2 of the last 5 years
taxpayer then rented the home and claimed depreciation as a deduction
taxpayer sold the house within the 5 years
Is the depreciation a reduction of basis or is it recaptured at the 25% rate?
What exactly is the rule for depreciation recapture in the following scenario:
taxpayer lived in the home 2 of the last 5 years
taxpayer then rented the home and claimed depreciation as a deduction
taxpayer sold the house within the 5 years
Is the depreciation a reduction of basis or is it recaptured at the 25% rate?