Depreciation recapture?

Can someone explain it to me like I’m a 5 year old?

I bought a house in 2006 and moved out of state in 2008. It was super underwater due to the housing market crash. I was then an accidental landlord. It was rented out from 2008 – 2021. I sold house in July at a loss. Purchased 110k. Sold 100k (with a 7,000 credit to the buyer for a new roof).

I also sold my primary residence in 2021 and bought a different house for a new job in another state. (Modest gain – house was not in a desirable hot selling location)

Will I have to pay the IRS a bunch of money? 8s there any way to avoid?

I had no idea that depreciation recapture was even a thing. I never wanted to be a landlord and no one has ever mentioned it to me.

No regrets getting out of the landlording bs, but I’m a little irritated. I had big plans for my (now likely nonexistent) tax refund.

Damn the IRS & me for my ignorance. Can’t even deduct interstate moving expenses anymore. (Shakes fist)

submitted by /u/ROXSTR80
[link] [comments]

Can someone explain it to me like I’m a 5 year old? I bought a house in 2006 and moved out of state in 2008. It was super underwater due to the housing market crash. I was then an accidental landlord. It was rented out from 2008 – 2021. I sold house in July at a loss. Purchased 110k. Sold 100k (with a 7,000 credit to the buyer for a new roof). I also sold my primary residence in 2021 and bought a different house for a new job in another state. (Modest gain – house was not in a desirable hot selling location) Will I have to pay the IRS a bunch of money? 8s there any way to avoid? I had no idea that depreciation recapture was even a thing. I never wanted to be a landlord and no one has ever mentioned it to me. No regrets getting out of the landlording bs, but I’m a little irritated. I had big plans for my (now likely nonexistent) tax refund. Damn the IRS & me for my ignorance. Can’t even deduct interstate moving expenses anymore. (Shakes fist) submitted by /u/ROXSTR80 [link] [comments]

<a href="Read More“>View Full Article

Need More Commercial Real Estate Leads?SAVE 40% this month!

Our commercial valuation calculator was created to evaluate commercial real estate. In 6 quick steps you will know your NOI, CAP RATE, and IRR.

Now you can get your own branded version of our calculator!