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Level 6
January 14, 2022

Nonresident sells foreign property that was previously depreciated in the US

  • January 14, 2022
  • 1 reply
  • 2 views

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 reply

    sjrcpa
    Level 15
    January 14, 2022

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

    The more I know the more I don’t know.