Sec. 121 Exclusion

[RLymanC]

Seems as thought I read something that indicated the exclusion was going to be reduced if you used the property as a rental, but otherwise were entiled to the full exclusion. Do not factor in depreciation recapture.

It had something to do with not allowing the full exclusion because of the rental activity either before you moved in or after you moved out.

This is a NEW proposal, put I can't find the article.

[S T]

Might be

It might be in this thread of a few weeks ago

http://www.thetaxbook.com/forums/showthread.php?t=9496&highlight=PERSONAL+RESIDENCE+EXCLUSION

Sandy

[okie1tax]

If you think that prior,pre 1-1-09, rental use has NO effect on the house, I think you should read the new provisions again. The depreciation claimed, as I read it, does still reduce you basis. Can someone point where I may have read this wrong?

[solomon]

Seems as thought I read something that indicated the exclusion was going to be reduced if you used the property as a rental, but otherwise were entiled to the full exclusion. Do not factor in depreciation recapture.

It had something to do with not allowing the full exclusion because of the rental activity either before you moved in or after you moved out.

This is a NEW proposal, put I can't find the article.

This is law - not a proposal.

Non-qualified use does not begin until Jan. 1, 2009.

Unrecaptured 1250 gain still applies for depreciation after May 6, 1997.

http://www.house.gov/jct/x-63-08.pdf

[RLymanC]

Sec. 121

Thanks for all of the above,,,just the info I was in need of.

This is the greatest board, "ask and ye shall receive," I'm not making light of that, it's just a fact. Thanks again.