What is the name of your state?What is the name of your state? Pennsylvania
I bought a house in PA for my parents in 1978. I also lived in the house for several years. After moving in 1980, I considered the home as rental property and began using Schedule E and I collected rent from them (which basically paid the mortgage). I also paid for and deducted all expenses to the property (new furnance, etc). I also listed the depreciation on Schedule E. My parents have since died, and I no longer consider it a rental property. I'm preparing to sell it. Do I need to review all of my tax returns since 1978 to determine the dollar amount of depreciation and hence determine my gain on the house? Or is there an easier way? I also read that there were changes to the tax laws in 1987 that impact this gain. Some Pubs say it must be considered ordinary income and others say it is considered capital gain. This home was bought before 1987.
Can anyone give me a straight answer on how to handle this?
Thanks,
Tim...
I bought a house in PA for my parents in 1978. I also lived in the house for several years. After moving in 1980, I considered the home as rental property and began using Schedule E and I collected rent from them (which basically paid the mortgage). I also paid for and deducted all expenses to the property (new furnance, etc). I also listed the depreciation on Schedule E. My parents have since died, and I no longer consider it a rental property. I'm preparing to sell it. Do I need to review all of my tax returns since 1978 to determine the dollar amount of depreciation and hence determine my gain on the house? Or is there an easier way? I also read that there were changes to the tax laws in 1987 that impact this gain. Some Pubs say it must be considered ordinary income and others say it is considered capital gain. This home was bought before 1987.
Can anyone give me a straight answer on how to handle this?
Thanks,
Tim...