Investors & landlords


@Carl wrote:

.....you had to use a cost basis for depreciation, which I'm confident would have been what you paid for the house originally, plus the cost of any property improvements you did to the house before and after converting it to a rental.


@Jewelwing did, in fact, use a basis for depreciation and whether that was the cost basis plus improvements, the fair market value on the date of conversion, or some other figure is now a moot point since the property has already been sold.

 

The accumulated depreciation deductions taken on whatever figure was used as the depreciable basis will be the unrecaptured Section 1250 gain.