Deemed disposition

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mtnman
Posts: 37
Joined: Thu Nov 15, 2012 2:06 pm
Location: Lethbridge, Ab

Deemed disposition

Post by mtnman »

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
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nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

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.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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