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Employee
November 27, 2018
Question

selling ahouse

  • November 27, 2018
  • 1 reply
  • 0 views

I bought a vacation homier 2015 and put in $18K of improvements in 2016 and 2017. In 2018 I turned it into a seasonal rental. Now in December I will be doing a 1031 exchange on a more expensive seasonal rental.  How do a recoup the $18K since it was not depreciated.  The original purchase price was $170.

    1 reply

    Carl11_2
    Employee
    November 27, 2018

    You will never "recoup" the 18K in property improvements. it just gets added to your cost-basis. Make sure the 3rd party agent handling the exchange is well aware of this.