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R
rannr925
April 9, 2024
Question

Sale of rental property

  • April 9, 2024
  • 1 reply
  • 0 views

I had rental property for 19 years.

The renter moved out in Nov 2022 and I put it on the market. 

I sold it on Feb 1, 2023. Now I am having to pay huge capital gains on it.

Since I didn't try to rent it out in 2023, does that make it my second home? Does selling a second home have less tax than selling rental property?

    1 reply

    D
    DianeW777
    April 9, 2024

    No, regardless of selling it as a second home or a rental the depreciation must be recaptured. The recapture would occur even if you had converted it to personal use as a second home.  

    No the tax will be the same due to the depreciation recapture requirement. It never goes away.

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