Capitol Gains Question
I purchased a duplex in 1981; lived in one unit, rented out the other. Purpose - have my elderly father occupy one unit when necessary. Feb. 1990 he moved to my duplex (to high desert from Oregon). He hated the extreme heat. Moved back to Oregon.
I moved to Oregon to take care of him, Oct. 1990. I now want to sell the duplex, which has been rented out since Oct. 1990 - through property management.
What kind of capitol gains am I looking at?
Long-term capital gain (Capital as in $$, not Capitol as in Des Moines is the Capitol of Iowa)
If you've had it for that long a 1031 exchange would likely be a good idea unless you want to completely cash out, and then your looking at a long-term capital gain
In addition to long term capital gains, depreciation taken since 1997 is subject to recapture.