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Jena Ketchum

What if the provider and her spouse get divorced and the spouse keeps the home. How would this be handled if the ex-spouse later sells the home or lets it foreclose? If the home is foreclosed on, are taxes stilled owed? Would the provider pay taxes still or would the ex-spouse?


In a divorce, the spouse who owned the house when it was sold would pay these taxes. Therefore, I recommend that in the divorce settlement, the spouse who doesn't get the home should pay for half of the taxes on depreciation claimed during the marriage. It's my understanding that the taxes would still be owed in a foreclosure, but check with a tax professional.

Clara Mooso

I was told last year that the law changed about the depreciation when you sell the home. Can you verify this info? Thanks


The law did change in 1997. Before that time, it was much more difficult to avoid paying taxes on the profit on the sale of your home. But the rule on the tax on depreciation has been around for a long time and remains the same for 2013. Tell me more specifically what you heard.


How does it work if a couple divorces (divorce finalized years ago, the spouse keeps the house and the provider buys a new home and continues running a daycare in that home. Then years latter she decides to sell her current home. At what point does depreciation taxes begin? When the first home was purchased but left to spouse or does it begin when she purchases her new home?


What happens if we never claimed the depreciation and never sell our home? If it passes on to our heirs will they have to pay taxes on what could have been depreciated?


If you don't sell your home in your lifetime, you won't owe any tax on the depreciation. I'm not sure if your heirs will have to pay the tax. I've never had that question before.


I had a question. My wife did daycare in our home from 2011 to 2012. So we had two years where we claimed depreciation on our home. We are planning to sell our home next month. I should only expect to have to pay taxes on the depreciation claimed for the years she was running the daycare, correct?


Yes, you will only have to pay tax on the depreciation you claimed (or were entitled to claim) for the two years you used your home for her business.

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