Hi,
I have a rental property which I originally purchased as my primary residence. It was first rented out starting January 2014 and I took advantage of some $3,800 in depreciation when I did my 2014 taxes.
Now I am considering refinancing the loan. Now, I have never refinanced a home loan so this may totally be a non-issue, but...
The current market value of the home will be much higher than the assessment (based on my previous purchase price, etc.)
I bought this home for $150k a few years ago and I think the current appraisal would come in at $180k or so.
What happens to the depreciation then? Do I owe it back to the IRS?
Thanks