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?

1 Answer

  • 4 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.

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