Most homeowners don’t realize the hidden tax trap when converting a home into a rental. The IRS will treat it as if you took depreciation — even if you never actually claimed it. When you convert it back into a primary residence… that depreciation recapture gets triggered. ⚠️ And here’s the kicker: It cannot be deferred or offset by the Section 121 capital gains exclusion. But there is a way to navigate this. ✅ You can leverage a 1031 exchange — rolling the rental into another rental property instead. This move can help you sidestep the trap while still positioning your wealth for growth. 💭 What do you think? Tax professionals — I’d love to hear your insights in the comments. Credit (IG): Carter Cofield - cofield_advisor Sawand Belcher - thisismetakingaction SF0746