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re: Can I avoid capital gains on the sale of my rental property?

Posted on 8/4/21 at 9:22 am to
Posted by dat yat
Chef Pass
Member since Jun 2011
4361 posts
Posted on 8/4/21 at 9:22 am to
quote:

You’re still on the hook for depreciation recapture correct?


My exchange agent says yes. My neighbor who is the tax partner at a firm says no. I'm still looking into that part.

Either way, the duplex was only $28k when I bought it so the depreciation has been minimal over 8 years.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37311 posts
Posted on 8/4/21 at 12:29 pm to
quote:

You’re still on the hook for depreciation recapture correct?


quote:

My exchange agent says yes. My neighbor who is the tax partner at a firm says no. I'm still looking into that part.


Here's the deal.

If you swap depreciable property for other depreciable property, you don't have to deal with depreciation recapture.

If you swap depreciable property for non-depreciable property (such as land), then yes, you do need to deal with depreciation recapture.
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