"...if you couldn't deduct all the depreciation due to the business income limit, then the depreciation to be taken into a/c would only be the amount you actually deducted. "
I have a similar situation and am wondering how to determine the amount of depreciation I actually deducted.
I claimed $44k in depreciation over several years for a home business that ended in 2021. I sold the home this year (2023) for a gain. My business was not profitable enough to deduct all of my expenses and I ended with a $26k business loss carryforward. Do I have to recapture the full $44k in depreciation, or can I reduce the $44k by the $26k in undeducted expenses to recapture only $18k of the depreciation? (or perhaps some sort of proportional calculation)?
Any advice would be greatly appreciated.
