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    Vacation home

    Client is tired of renting vaction home out. Wants to remove from that category. Am I correct that is not a taxable event. He already has a second home(with bigger mortgage) so interest deduction is gone. All the depreciation taken will remain for recapture when sold. If he has any suspended loses-what happens to them(I can not remember if he has them)??? Any corrections or missing facts????

    Thanks..

    Maybe we can get Homer Simpson to run for President in '08.

    #2
    vacation home

    I think you're correct. Remove from schedule and then when sold CG will come into effect. Suspended losses will be deducted from CG at time of sale along with selling expenses up to the point of income generated with certain exceptions. Refer to TTB 7-6
    Larry M.

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