You’ll recapture the depreciation, but that can be mitigated by income averaging. Also, the recapture will be taxed at low capital gains rates, while the depreciation is a deduction from regular income, which is taxed at a higher rate. So you come out ahead. I was a landlord for only three years after I inherited my parent’s condo. It was during the 2007-8 financial crisis and I had to wait three years for the market to recover before I could sell. I hated it.
That happened to me in 8th grade. I was relieved since I knew I couldn’t sing on key. I could still identify tunes by looking at the “sheet” music the teacher wrote on the blackboard every morning. That got me an A.
You’ll recapture the depreciation, but that can be mitigated by income averaging. Also, the recapture will be taxed at low capital gains rates, while the depreciation is a deduction from regular income, which is taxed at a higher rate. So you come out ahead. I was a landlord for only three years after I inherited my parent’s condo. It was during the 2007-8 financial crisis and I had to wait three years for the market to recover before I could sell. I hated it.