I have a client who uses his rental property for less than 2 years as his principal home. How do I report that in ProSeries Basic ? Thanks
No. He uses his rental property for his principal home.
No
Can someone help to answer my question ? Thanks
If the rental property is no longer a rental property but is now the principal residence there is nothing to report on Schedule E. Any expenses (repairs, utiltiies, etc) are now personal expenses therefore not deductible. Mortgage interest, real estate taxes would be Schedule A deductions.
So when they sell that home if they stay in there more than 2 years, there is no tax on capital gain. Is it right ?
And gain to the extent of prior depreciation will be taxed.
Yes, recapture of depreciation. Thanks
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