In the US if one has a rental home which becomes a vacation property for personal use is there a deemed disposition as there would be in Canada ?
Thanks
Deemed disposition
Moderator: Mark T Serbinski CA CPA
There is no immediate deemed disposition for IRS puposes on change of use. This pllies regardless if the home becomes your first or second home.
However, when selling the property down the road, one will not be able to fully exempt the cap gains, requiring at a minimum to recapture depreciation that was taken while a rental property.
However, when selling the property down the road, one will not be able to fully exempt the cap gains, requiring at a minimum to recapture depreciation that was taken while a rental property.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing