Rental property and LLC

[FlyingRon]

The recapture of depreciation has always been true. (At least since 1986.) The proportional exclusion for property which has some business/non-residential use has to do with the changes in Section 121 in 2009.

I think you mean 1996.

 

[tranquility]

Section 1250 notes:

1996 - Subsec. (e)(4). Pub. L. 104-188 struck out par. (4) which
read as follows:
"(4) Qualified low-income housing. - The holding period of any
section 1250 property acquired which is described in subsection
(d)(8)(E)(i) shall include the holding period of the corresponding
element of section 1250 property disposed of."

No, not 1996 as this is the only change in the law that year.
Maybe, 1976, but it seems even before then.

1976 - Subsec. (a). Pub. L. 94-455, Sec. 202(a), in revising text
generally, made the following changes:
(1) Added par. (1).
(2) Redesignated as pars. (2) and (3) existing pars. (1) and (2).
(3) Made the following changes in par. (2): inserted in heading
", and before January 1, 1976"; designated introductory text as
subpar. "(A) In general"; inserted therein "and the amount
determined under paragraph (1)(A)(ii) exceeds the amount determined
under paragraph (1)(A)(i), then"; redesignated as cl. (i) existing
subpar. (A); substituted therein "attributable to periods after
December 31, 1969, and before January 1, 1976" for "(as defined in
subsection (b)(1) or (4) attributable to periods after December 31,
1969"; substituted cl. (ii) and concluding text for subpar. (B) and
concluding text which read:

Maybe you're talking about Section 121?

2008—Subsec. (b)(4). Pub. L. 110–289 added par. (4) relating to exclusion of gain allocated to nonqualified use.

Nope, passed in 2008 for the 2009 tax year.

So, it seems the recapture is from at least 1976 and the proportional calculation from 2008 for 2009.

Care to try again?