Answer
Jul 24, 2025 - 05:54 PM
If you depreciate an asset, you will always recapture it upon sale, no matter if you now want to switch it to a primary residence or whatever. That depreciation is still stuck with that asset, and so it doesn't go away. you will need to recapture it eventually. And if you don't, like let's say you did move into it and now you're claiming it as a primary residence and you just didn't recapture the depreciation, they will catch you. They will catch you and they will make you pay a lot of penalties and fees and backtacks. When you get caught for doing things a little too much, it's, You get caught. Well, one, you're going to get caught by the state. The states are usually the most efficient ones that will catch you because they want that tax. Two, you'll probably, because the state catches you, they'll tell the feds. And then the feds are going to be much, much slower, but you have to pay interest. The penalties suck on it as well, but the interest, especially now. And so if you don't get caught for four years, it's a lot of interest.
