Taxes On Selling Duplex
I owned a duplex for 9 years. After 7-8 years of living in half I moved my main residence to another house and rented out both halves. Now I sold it in Aug and I have been depreciating the whole time I owned it. Now the question: Do I have to pay Capital Gains on the whole amount over my basis? or Am I exempt minus my depreciation from Capital Gains because of it being my primary residence for 2 out of the last 5 years? Or do I split everything in half because half was business and half was personal? :-?
Depreciating your personal residence is a no-no. Better get to a licensed tax professional to resolve the tax questions.
I recently was in a similar situation...... Basically, you have no capital gains on the portion that was your personal residence (I assume 50%) and pay capital gains on the portion that you rented (I assume 50%). If you lived in half and rented out half then you should have only depreciated 50% of the building over the 9 years you lived there. You were allowed to depreciate the whole building for the time after you moved out and rented the whole thing.
I am not positive I depreciated the whole amount for the years I lived there because I know when I was doing taxes then, I divided in half allot. But if I did depreciate then on the whole building what would be a viable solution to fix it? Ammend almost 10 yrs of taxes?
I would say in Georgia. Most states allow foreign entities to own property without registering as a foreign entity, but I would check on that for Florida.
[addsig]