jbeck695[at]gmail.com posted:

- quote -

Not sure how you're getting your numbers. The depreciation
of 8k should be _subtracted_ from your cost basis, dropping
it from 86 to _78. Also, there should be a Form 4797
produced (See Pub 523).

- quote -

Whatever your eventual gain, it will be taxed as a Long-Term
capital gain. You clearly cannot meet any of the basic
tests for Main Home exclusion, so it's simply a business
property sale at this point.

Bill

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scenario:

bought house in 1995 for 86k, lived there for 1 year & have
been renting since. current value is 175k depreciated 8k

so my question is if I sell the house for 175k
the cost basis is 80 (86-8).
the capital gains 175 - 80 = 95k
how will the 95k be taxed?

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