Are there any tax consequences for depreciating an income property?
If you depreciate an income property and then occupy it later as your residence, are there any tax consequences?
Answered By: Bullivant Houser Bailey PC
Not at the time you begin to occupy it. Your tax basis will be lower because of the depreciation and the depreciation recapture won't qualify for the homesale exclusion when you later sell the home. The time the property was rented out won't count as occupancy time for purposes of qualifying for the exclusion.
Answer Applies to: Oregon
Replied: 1/27/2012
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Oregon
Replied: 1/27/2012
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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