Skip to main content
February 13, 2024
Question

If I never rent out my second home, when I sell it for a profit, should I add back any depreciation recapture?

  • February 13, 2024
  • 2 replies
  • 0 views

How is the capital tax calculated for never rented-out second home? Thanks!

2 replies

DoninGA
Employee
February 13, 2024

You cannot depreciate a residential property that was never used as a rental.

February 13, 2024

If you never rented out your second home, then you have never deducted depreciation and there's no depreciation to recapture.

 

The capital gain (loss) is equal to your sale price minus your cost basis (purchase price plus any improvements made to the home) minus your selling costs.

 

Follow these instructions to enter the sale of your second home in TurboTax.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"