@tanlongpham , sorry for the delayed response. However, would like to point out this :
(a) You said this was a rental property , specifically residential property.
(b) If that is case , you must depreciate the property based on MACRS convention and a class life of 27.5 years.
(c) Therefore whether during the useful life years , whether you reported / recognized the yearly depreciation or not ( on Schedule-E ), since it was allowable , you are deemed to have taken it.
So the answer here is "I have taken depreciation on this property "
Note , as I said earlier , this accumulated depreciation reduces your basis and hence increases your gain and to the extent that the gain is due to depreciation, it is treated as ordinary gain and NOT Capital gain.
Does this make sense and is there more one of us can do for you ? I recognize that the filing date is here and so if you have already filed then you need to consider filing an amended return, once your return has been processed.
pk
