Converting Rental Property BACK into Primary Residence- any tax implications to expect?

Forum|Forum|1 year ago
June 2, 2024
1 reply
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I'm curious if anyone knows of any taxes or "watch outs" we should expect when converting what was our primary residence, turned rental, back again into our primary residence after a year of renting it out to tenants. We've had some life happenings and we need to move back into our old home. Is there a proper way to switch it back?

Not A Product Question

AmeliesUncle

In most cases, there won't be any immediate tax implications unless you claimed Section 179 on any property (appliances, carpet, etc.) or claimed accelerated depreciation on "Listed Property" (which is unlikely you did that).

However, whenever you eventually sell the home, the rental period will affect your $250,000/$500,000 exclusion for selling your Principal Residence, as well as paying tax on the depreciation while it was a rental.