I have a client who had rented his home out for the past two years. He had lived there as his personal residence before that time. He stopped renting out the home on 1/31/07. He moved in on 2/1/07 and it was his personal residence the rest of 2007. Is he still able to depreciate for the one month in 07 and also he has carryover expenses from prior year that were not deductible. Would that be deductible now in 2007 or no because of the personal use for 11 months. He has no other rental expenses except one month mtg int & one month prop taxes. He had no intention of renting it out again. He kicked out the renters and made it his personal residence. Also what happens if he losses in a foreclosure. I am assuming he would have to pay tax on the depreciation recapture even if he has no gain from the foreclosure.
Thanks!
GTS1101
Thanks!
GTS1101