My client has rental property. When I got her package this year, there was no rental income.
Seems she put it up for sale at the beginning of the year. Then rent to buy. Then sale.....etc.
I told her that when it was no longer available to rent, it became a second home, in a sense, so the depreciation stops and the interest and taxes go to the Sch A.
When she sells it, cap gains and depreciation recapture will be in the equation.
Any thoughts? Am I on the right track?
Seems she put it up for sale at the beginning of the year. Then rent to buy. Then sale.....etc.
I told her that when it was no longer available to rent, it became a second home, in a sense, so the depreciation stops and the interest and taxes go to the Sch A.
When she sells it, cap gains and depreciation recapture will be in the equation.
Any thoughts? Am I on the right track?