Question
file TAX on 1031 exchanged property sale
Hi, I've bought rental property #1 with price of $200K in about 10 years ago. I did 1031 exchange 2 years ago to get rental property #2 with purchase price of $500k. Now i am planning to sell property #2 for good, no more 1031. My questions are
1, How do I calculate capital gain: do I use property #1 purchase price as basis or property #2 as basis?
2, how to calculate depreciation: I have 10 years of depreciation on property #1 and 2 years depreciation on property #2. Do i need to recapture all these 12 years?
thanks
