Rental converted to personal use

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  • LCP
    Senior Member
    • Dec 2005
    • 432
    #1

    Rental converted to personal use

    Is depreciation recapture an issue when a taxpayer stops renting and begins to use it as a second home?
    Tags: None
    • solomon
      Senior Member
      • Aug 2006
      • 1012
      #2
      Assuming the depreciation started after May 6, 1997 then there would be no recapture as such because there was no accelerated depreciation. However, upon sale there will be unrecaptured 1250 gain for the depreciation taken and taxed up to a maximum of 25%.

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