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Business & farm
You would need to enter the property on your Schedule E with the adjusted basis and depreciate 27.5 years.
The adjusted basis would be the original cost/basis less depreciation taken (or could have been taken) while it was a Business asset (on schedule C)
When you eventually sell, the depreciation recapture will be Ordinary Income and proceeds above your original cost will be capital gains.
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‎February 22, 2023
7:48 PM
7,885 Views