Sold my rental property. Do I have to repay the amount I depreciated the property?

I sold a rental property that my brother and I owned for 12 years because he needed his half of the equity to purchase a new home in his new town. We almost doubled the sales price from the purchase price. I am going to reinvest my money in a home for my family to live in and therefore not doing a starker exchange. Here's the question: we have depreciated the value of the home on our taxes every year (27.5 year straight line depreciation), what kind of tax liability do we have from the depreciation? Do we have to pay back the depreciation amount?

 

I really don't know the answer to this question as am also 'quite green' in matters related to real estate...are you doing all this by yourself if i may ask?...or you have a realtor and a lawyer to help and advice you along the way... because in my case that's what i'd do

 

I would always have a good CPA by your side when it comes to real estate sales and taxes. My assumption would be that you would be liable for some of depreciation payback.

 

It all depends on if this is considered an income I believe. I could be wrong, but technically that's how it all works out on your end. It may be "long division", but that's what a straight line depreciation all boils down to. You made money from it. What the government considers it to be, that is quite another matter.

Find a CPA my friend, and a good one. A good one can find loopholes and read fine print like nobody's business.