Daycare & Business Use of Home

[spencer]

Daycare & 8829 I can handle. Sale of home and purchase of another (continued daycare), I'm not so sure of. Do I recapture depreciation? Do I like kind exchange? Or maybe just quietly slip into the new house with new depreciation and carry on. Ha!

[Gene V]

Daycare & 8829 I can handle. Sale of home and purchase of another (continued daycare), I'm not so sure of. Do I recapture depreciation? Do I like kind exchange? Or maybe just quietly slip into the new house with new depreciation and carry on. Ha!

I would recapture the depreciation on the sale of the home. And start a new depreciation on the new home . My software allows two 8829—so should be no problem in allocating expenses to two difference 8829.

If you had a lot of depreciation after May 6, 1997—you might
consider doing a 1031 exchange. However, I think I would stay with
the simpler method.

[Gretel]

I assume the sale and purchase of home has taken place in 2009 and the transactions are completed. If this is true, the option for a 1031 is non-existent.