Taxes on owner-occupied rental property?

If you move into and occupy half of a duplex (I assume that is what you mean by double) you must split all the expenses between the rental portion of your taxes (Sch E) and your itemized deductions. You will lose half the depreciation since none is allowed on a personal residence.

When you sell you will have the same scenario. The investment property portion requires immediate payment of capital gains taxes and recaptures all of the depreciation that you took.

The residential gains can be deferred under some circumstances.

Basically, you are treating the property as though it were 2 separate properties--one is an investment property and the other is your personal residence. It is a bookkeeping hassle.

No, you can't deduct rental property expenses for any period that you are not renting the property or trying to rent it. So, it would no longer be a rental property if you are using it as your personal residence. If you itemize, you will still be able to deduct mortgage interest and property taxes.

Assuming you qualify for the exclusion of gain on sale of personal residence, you will still have to report taxable gain for the amount of depreciation you were allowed while you used it as a rental.

Keep in mind that one of the qualifications for the exclusion is that you must have lived in the home for 2 of the past 5 years prior to sale. The period of time that you owned it but rented it out does not count towards qualifying for the necessary 2 years. One of the reasons for the 2 out of 5 years rule is to cover situations like yours or people who relocate and rent out their previous home because they aren't able or don't want to sell it right away. But, when you sell, the character of the gain, if any, is part rental and part personal residence.

I'm not sure exactly what you mean by a "double". If you mean a duplex then the above applies to the half you lived in. The other half could still be treated as a rental property for expense deduction and treatment of gain.

I was living in a rental property, but I was doing my taxes as I was living with my wife.

the true my wife and I were separated when I purchased the rental house back in 2002.

now I sold the rental house, could I amend my taxes to show as owner occupied for the last 2 years to claim owner occupied?

No. Every deduction is cut by 50%. On the sale all that depreciation you took gets added back on the half the actual sale price. You would pay proved on that half at the business rate.

House sells for 400k. 200k is the rental, You paid 100k back when

150 profit on rental now add in the depreciation you have taken .

30K over the years so tax is on 180 profit.

My father and mother own a rental property for over 40 years. 12 years age my father decided not to rent it anymore and completely remodel it and turn into his primary residence. The remodel began with a complete gut out of interior. Plans and permits were done to turn it into a nice home. Then my father got Alzheimer's, and the property has been sitting with no drywall and just framed (interior) for the last 10 years. We refuse to put him in a home and my mother and 3 sisters take turns taking care of my dad. We now are thinking about selling the house in as is condition. What are my tax breaks, or consequences? My parents owe about $90k on the property and would be selling for $600K. The rent before the remodel began that they were getting was $2k per month.

the key's to enhance a honest skill to divide expenses between the basement area and the different aspects of the valuables. For the construction I in many circumstances use a proportion of the excellent sq. pictures of residing area to calculate depreciation and allocate expenses. If there are areas in touch different than residing area that should desire to be seen. the actual trick is to be honest in those remedies*

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