I purchased a condo in 2005 for $135K. I rented it out started in 2007 and sold in 2024 for $145K. Sales expenses were ~17K. All those years my expenses far outweighed my rental income and schedule E always had no rental income. Schedule E had ~$5k depreciation expense each year, however I only needed about $700 each year to zero out the income. In other words, I didn't need the full deprecation amount. The question is, can I add up ~$700 per year as the amount used for deprecation instead of the $5K since the whole depreciation amount wasn't needed? TT is adding up all of those years of depreciation and it's causing me to owe $15k. I have already lost so much on this property in equity, expenses, etc. and now this is icing on the cake.
