@jamesrath1970 wrote:
We purchased the house nearly 7 years ago.
Was the house a rental during that seven-year period?
Did you convert it to a rental from personal use at some point?
If the house was used exclusively for rental use when you purchased it seven years ago then, as @DeanM15 stated, the IRS will whack you regardless of whether or not you actually took deductions for depreciation on an annual basis. If you have not been taking deductions for depreciation on this rental for an extended period, you should consult a tax professional.
