Correction:

- quote -

In my earlier response to this query, I can't believe I did
not include the fact excludable capital gains on your main
home are limited to $250,000 ($500,000 MFJ).

This is just to set the record straight.

Bill

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geoff.deinema[at]ps.net asked:

- quote -

No, but you will have to file a Form 4797 to calculate
Recapture of the depreciation which you took. That amount
will be taxable as ordinary income (as it would have been,
if you hadn't deducted it from previous years' returns) ...
so it won't be a major problem. Just a paperwork hassle.
You can check Pub 527 - Residential Rental Property and Pub
544 - Sales and Other Disposition of Assets, as well as the
instructions for Form 4797, to figure out how to report.

Or, you could just seek some aid from a professional -- if
you can find one with the time to help you, at this late
date.

Once you've cleared up the depreciation recovery issue, your
gains on the sale of your [former] main home ... will be
completely free of tax, and non-reportable.

Hope this helps.

Bill

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If I rented a house that was our primary residence for the
last 2 out of 5 years and claimed depreciation on it for 2
of the years that it was rented. Do I need to pay the
capital gains on the house when it was sold last year?

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