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Nonresident sells foreign property that was previously depreciated in the US

ptax255
Level 5

Hi, client has been a US resident (on a visa) and been taxed as such. During this time he had rental property in the UK which he depreciated in the US tax returns. If he were to go back to the UK and then sell the property, would depreciation recapture still apply?

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1 Comment 1
sjrcpa
Level 15

If he still has to file a US tax return, yes the unrecaptured 1250 gain rules would apply.


Ex-AllStar