How do I handle removing my rental from my taxes?
I want to take my residential rental off the tax return and let my daughter and family live in it she is a trustee on the trust that is owned by our family. Do I have to recapture the depreciation taken for the life of the rental? Do I have to show it as a sale of business property or how do I handle it?
- STEVEN FLv 74 weeks ago
You just STOP collecting rent and listing related expenses on your return. It IS NOT a sale. There is nothing to report as long as you own the property.
When it is eventually sold, the records from the time it was used as a rental are needed to determine the taxes due as a result of the sale.
Note: You were not clear if the property is in your name, or owned by the trust. That actually doesn't change the answer.