PatriciaV
Expert Alumni

Get your taxes done using TurboTax

Yes, you should enter your prior depreciation when you set up the sale of your home in TurboTax. Depreciation reduces your basis in the property.

 

The second question about depreciation after May 6, 1997, is part of the calculation of taxable gain. If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. In other words, you will pay taxes on this amount because you previously took the deduction.

 

Unless you are instructed to enter a negative number, all entries in TurboTax are positive numbers. Take note of any blue links (such as "Learn More") on entry screens - these provide more information and instructions for that topic.

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