We don't remove anything in the rental condo from service, unless it no longer serves its purpose, and is beyond repair. Then it is thrown out or in a rare case donated to a thrift store that either discards it or sells it for a penny on the dollar. So in the future I plan to identify the discarded assets in the TurboTax using your suggested method, and leave everything else untouched, even if fully depreciated. Our total expenses are always larger than our rental income, regardless of any purchased assets that must be depreciated. TurboTax is carrying forward (somewhat mysterious) disallowed rental expense deductions from previous years, including the depreciated items, but it doesn't make any difference in the large scale of things. The income from the rental condo always ends up as zero. (And that's O.K. with us; we and our kids enjoy the condo a few days a year, and its market value has increased tremendously.) Thank you!
