THANK YOU!!!!! I did not have much to tax so that is a big load off my mind. I was afraid they were going to hit me for the amount I paid for the house.Who doesn't take depreciation? Don't answer that, we did done deal
.It's not that you have to pay back the depreciation dollar amount, it's that you to pay tax on it as it lowered your taxable income. Big difference in the amount of dollars involved.EmptyNest said:
.
I seem to remember that the 2 year rule went out the window a while ago.We have not taken a penny, cause the POs warned us that we'd have to pay in the end, like they did.Who doesn't take depreciation? Don't answer that, we did done deal
.
.
I don't think we'll make much, if any of a profit when we sell and since we've taken no depreciation, we'll not likely have to pay any taxes on the sale.Who doesn't take depreciation? Don't answer that, we did done deal
.It's not that you have to pay back the depreciation dollar amount, it's that you to pay tax on it as it lowered your taxable income. Big difference in the amount of dollars involved.EmptyNest said:
.
Maybe so but if you took depreciation on home it must be paid back when you sell .. I guess justI seem to remember that the 2 year rule went out the window a while ago.We have not taken a penny, cause the POs warned us that we'd have to pay in the end, like they did.Who doesn't take depreciation? Don't answer that, we did done deal
.
.
.
Agreed on location. We bought as single fam and will sell, when that hopefully far off day comes, as same. Wish you the best, as always.
Hmmm, I always thought that you paid tax on the gain...that is the difference between your original purchase price plus capital improvements and the new sale price+ depreciation taken.Maybe so but if you took depreciation on home it must be paid back when you sell .. I guess justI seem to remember that the 2 year rule went out the window a while ago.We have not taken a penny, cause the POs warned us that we'd have to pay in the end, like they did.Who doesn't take depreciation? Don't answer that, we did done deal
.
.
.
the tax benefits from what others have said. I am going to ask our accountant at tax time to be sure
.
Yes, that's right!Hmmm, I always thought that you paid tax on the gain...that is the difference between your original purchase price plus capital improvements and the new sale price+ depreciation taken.Maybe so but if you took depreciation on home it must be paid back when you sell .. I guess justI seem to remember that the 2 year rule went out the window a while ago.We have not taken a penny, cause the POs warned us that we'd have to pay in the end, like they did.Who doesn't take depreciation? Don't answer that, we did done deal
.
.
.
the tax benefits from what others have said. I am going to ask our accountant at tax time to be sure
.
.
So since I doubt we will make any profit when and if we ever sellHmmm, I always thought that you paid tax on the gain...that is the difference between your original purchase price plus capital improvements and the new sale price+ depreciation taken.Maybe so but if you took depreciation on home it must be paid back when you sell .. I guess justI seem to remember that the 2 year rule went out the window a while ago.We have not taken a penny, cause the POs warned us that we'd have to pay in the end, like they did.Who doesn't take depreciation? Don't answer that, we did done deal
.
.
.
the tax benefits from what others have said. I am going to ask our accountant at tax time to be sure
.
.
I should be fairly safe then as we put in new windows, electrical, furnace, roof, siding, plumbing, not to mention the bathrooms that cost MORE than we paid for the house. Oops, there may have been some depreciation on some of that. Sigh.Hmmm, I always thought that you paid tax on the gain...that is the difference between your original purchase price plus capital improvements and the new sale price+ depreciation taken.Maybe so but if you took depreciation on home it must be paid back when you sell .. I guess justI seem to remember that the 2 year rule went out the window a while ago.We have not taken a penny, cause the POs warned us that we'd have to pay in the end, like they did.Who doesn't take depreciation? Don't answer that, we did done deal
.
.
.
the tax benefits from what others have said. I am going to ask our accountant at tax time to be sure
.
.
All of that adds up you will make money on yours. We have added paved drive , heat pumps and some insulation but aside from regular maintenance that is it. I will have to see exactly what our cpa depreciated.I should be fairly safe then as we put in new windows, electrical, furnace, roof, siding, plumbing, not to mention the bathrooms that cost MORE than we paid for the house. Oops, there may have been some depreciation on some of that. Sigh.Hmmm, I always thought that you paid tax on the gain...that is the difference between your original purchase price plus capital improvements and the new sale price+ depreciation taken.Maybe so but if you took depreciation on home it must be paid back when you sell .. I guess justI seem to remember that the 2 year rule went out the window a while ago.We have not taken a penny, cause the POs warned us that we'd have to pay in the end, like they did.Who doesn't take depreciation? Don't answer that, we did done deal
.
.
.
the tax benefits from what others have said. I am going to ask our accountant at tax time to be sure
.
.
.
It was the guys out of Lexington - Raetz & Hawkins. I don't remember the info you are sharing, but they are have some special proficiencies in B&B Accounting. They sent me info even though we weren't in Virginia.EmptyNest said:
Thanks but I think we figured it all out. Since we won't be selling.. at least that is what DH says I am not that concerned and will recheck with our cpa this tax season.
Wow, EN - no, I hadn't heard. I only met her once at a conference. I had given her info to some folks in that area looking, but that was probably a year ago.
my only thought it "where do people look?" I don't think in the Uk people think really of buying a B&B as a business unless its a larger one like mine so wouldn't think to look at a business estate agent - neighbours place 18 months specialist business estate agent nothing - changed to a domestic estate agent sold in 6 months and that's a 12 bed place. people are just too used to looking on Zoopla or Rightmove they woudn't know to look anywhere else for a "house" type building
As I read the IRS citation, there are two issues:
