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vucat75
Returning Member

Depreciation recapture

Does TT carry forward depreciation to the sale of rental property from past years files? If so where is it entered

3 Replies
tagteam
Level 15

Depreciation recapture


@vucat75 wrote:

Does TT carry forward depreciation to the sale of rental property from past years files? If so where is it entered


Yes, depreciation is carried forward from prior years and the entry should appear on Schedule E.

 

However, there have been some issues with the transfer from 2019 to 2020 which are being addressed.

vucat75
Returning Member

Depreciation recapture

Where does the recapture of depreciation happen once the property is sold? Is it added to the basis of the property. It appears TT does not do it automatically from past returns..

tagteam
Level 15

Depreciation recapture

@vucat75 Form 4797 will show the depreciation allowed or allowable, there is an unrecaptured Section 1250 gain worksheet, and any gain is calculated at the appropriate tax rate (up to a 25% maximum).

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