When you sell a rental or business property, including a home for which you took a deduction for a home office, you incur depreciation, whether you claimed it or not.
Arizona has its own depreciation schedule. Those rules have changed over the last 5 years. The depreciation adjustment changes the depreciation from the federal form to conform to the Arizona values.
Click on the screenshot below for an explanation of changes
in depreciation from the
Arizona instructions.
