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Originally Posted by retiredguy123
Question: If you move into a rental property that has appreciated before you moved in, can you escape the capital gains that occured before you moved in? And, what about the depreciation deductions that you took while the property was a rental property? Do you need to recapture these?
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Generally, you cannot entirely escape capital gains tax on the appreciation of a rental property by simply converting it to a primary residence. However, converting your rental property to your primary residence and meeting certain requirements can allow you to exclude a portion of the capital gains when you eventually sell it.
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams
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