sale of past rental as primary residence

[pedrosurf]

What is the name of your state? Ca.
We had a home that we used as a rental for about 14 years,showing income as rental and expenses(depreciation).
3 years ago we moved into it as our primary residence.
If we ever sell it,will there be a recapture for past expenses while a rental?

[tranquility]

The recapture is of depreciation and not of all expenses.

[pedrosurf]

My question is:Is depreciation recaptured on an investment that has been converted to a primary residence?

[ShyCat]

Yes. Rental depreciation is recaptured at 25% when the house is sold, even if it has been converted to a primary residence.

[xylene]

Originally Posted by pedrosurf

What is the name of your state? Ca.
We had a home that we used as a rental for about 14 years,showing income as rental and expenses(depreciation).
3 years ago we moved into it as our primary residence.
If we ever sell it,will there be a recapture for past expenses while a rental?

If this property is of even modest value (100,000 dollars or more) consider the value of consulting with a veteran accountant who can carefully review your detailed records of capital improvements and the like from when the property was an investment rental and now as a primary residence.

That way you will be certain to ge the most favorable tax situation at a reasonable price relative to the value of the property...

[abezon]

Originally Posted by pedrosurf

My question is:Is depreciation recaptured on an investment that has been converted to a primary residence?

You will have to recapture any depreciation claimed since May 1997. Depreciation claimed prior to then does not need to be recaptured if the home qualifies as your primary residence for 2 of the 5 years prior to sale.