I sold a piece of rental property this year. I bought it in 2016 for 270K and sold it for $380K. Every year that I owned it, I showed a passive loss on the property. That passive loss was non-deductible. So, basically, I had to declare depreciation but not get to deduct it. I know that I have to deduct depreciation from my basis when calculating capital gains. So, how does the passive loss work? Do I get to add it back into my basis when calculating the capital gains on the rental property? Thanks.
David
