House rented until sold...

[Janice Terry]

Client sold his home late December. Had rented it since January 2009 while it was for sale. Do we claim Schedule E depreciation (and expenses) on the house and then recapture depreciation on Form 4797 for sale of mixed property? There was no personal use of home in 2009.

Thanks.

[S T]

Rental

Yes I believe you would report as per usual on Sched E for income and expenses, Depreciation would cease on sale date. then complete your sale (form 4797) separate land, bldg,appliances, etc. You can also use the Search feature and I do believe there are a few past posits on this issue.

Sandy

[Janice Terry]

Thanks, Sandy, for your quick reply. Hadn't done a rental in awhile and couldn't find a scenario that matched this one in previous posts. Thanks for sharing that information with me.

[Gretel]

If asset was sold same year as placed in service there should be no depreciation.

[ChEAr$]

Client sold his home late December. Had rented it since January 2009 while it was for sale. Do we claim Schedule E depreciation (and expenses) on the house and then recapture depreciation on Form 4797 for sale of mixed property? There was no personal use of home in 2009.

Thanks.

Your heading said "house", but in the body you indicate that is was his "home',
meaning maybe personal residence?

If that were so, then the temporary rental could very well be reported as "other
income" and if section 121 applies...... ?

[Janice Terry]

Yes, it was his home. It would seem to make sense that he could just claim the rental income as "other income", without deductions for rental expense. Thanks.

[S T]

Hmm

Good catch ChEAr$
Another post with maybe not enough info and we overlook the details before posting.

Sandy