How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser
socrateaser, Tax Attorney
Category: Capital Gains and Losses
Satisfied Customers: 38577
Experience:  Retired (mostly)
10097515
Type Your Capital Gains and Losses Question Here...
socrateaser is online now
A new question is answered every 9 seconds

If an out of state property was bought as a rental in 2015

Customer Question

If an out of state property was bought as a rental in 2015 and was renovated but we later discovered that there were too many problems with the association dealing with renters so now it is strictly owner use, can we treat it as a rental for 2015 but then convert it to personal use for 2016? what are the tax consequences?
Submitted: 7 months ago.
Category: Capital Gains and Losses
Expert:  socrateaser replied 7 months ago.

Hello,

If the property was used as a rental in 2015, then you can report it as a rental on your tax return. For 2016, if you convert the property to personal use, then if and when you ultimately sell the property, you will have to recapture the depreciation expense that you reported in the year of rental use. That depreciation expense should be relatively small, since it was only for one year, and you may never have to recapture it, assuming that you never sell the property.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Customer: replied 7 months ago.
This property is in Florida. There is no income tax on rent there correct?
Expert:  socrateaser replied 7 months ago.

If the rent is payable to the property owner as an individual, then there is no Florida personal income tax. If, however, the property is owned by a corporation, then the corporation would owe Florida corporation income tax.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Expert:  socrateaser replied 7 months ago.

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, I receive nothing for my efforts in your behalf.
Thanks again for using Justanswer!

Related Capital Gains and Losses Questions