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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I have a rental property currently owned by an LLC my husband

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I have a rental property currently owned by an LLC my husband & I have. I was told if we move into that property and make it our primary residence for 2 years and then move it back to our LLC we can start depreciation all over again. The property has substantially increased in value. Is this true?

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

You can move into the house for two years as your primary, and then when you transfer it back to your LLC you can depreciate the lower of your tax basis or the fair market value. So, you will start re-depreciating the asset, but you won't be able to depreciate more than your basis or the FMV if that is lower.

Megan C :

Your tax basis remains your purchase price less depreciation taken

Megan C :

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