A couple of comments:
- From your facts, it appears that you may have taken depreciation twice on the property. If that is the case, then I recommend you amend your prior year tax returns.
- If the first bullet is correct, you also run the risk of taking depreciation twice in 2016 as well. To address this, I would recommend that you show the duplicate property as sold on 1/1/2016. Then you will need to compute the tax basis and show sales proceeds equal to the tax basis so the net result is no gain on this asset. While the sale of the asset may still show up, there should be no gain or loss.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
