Discussion:Property converted from busines to personal use
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Discussion Forum Index --> Basic Tax Questions --> Property converted from busines to personal use
Discussion Forum Index --> Tax Questions --> Property converted from busines to personal use
| 11 January 2008 | |
| Sole proprietory has a rental property it now converts to personal use (lives in it) What tax issues are involved on the conversion since depreciation was taken on the building portion and the property has increased in value | |
| 11 January 2008 | |
| Someone will confer but,
no tax consequence until it is sold. when sold he will have recapture. 121 can still apply if he lives in it for more then 2 years but will not exclude the recapture. | |
| 11 January 2008 | |
| It is 1250 unrecaptured gain on D which reduces the 121 exclusion. | |
| 11 January 2008 | |
| agree with solomon but it isn't until he sells the property | |
| 11 January 2008 | |
| The key word is 'unrecaptured gain' as Solomon wrote, not 'recapture' which is an incorrect use of a specific tax term.
UNLESS it was ยง1245 property; then 'recapture' is the correct term. | |
| 11 January 2008 | |
| no problem, I knew you were looking at the issue, not the terms, I only wanted it correct for other viewers later. | |
Death&Taxes (talk|edits) said: | 11 January 2008 |
| As long as that depreciation was taken after 5/9/97, tax will be paid on it at sale. | |
| 12 January 2008 | |
| what if some of the depreciation is pre 5/9/97 and some post? | |
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