Depreciation Recapture

[maddiewonders]

I moved to the U.S. on a TN visa in April 2020 and rented out my principal residence in Canada, which I purchased in August 2018. I claimed depreciation on the property in the U.S. from 2020 until 2023. Now that I am moving back to Canada and reoccupying my principal residence, and I will be filing a dual-status tax return in the U.S., will I be subject to depreciation recapture even though I haven't sold the property?

[nelsona]

No. Recaptuew would only occur when selling, but you won't be filing a US return when you sell, so there is no worry.