This is a follow up to https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/sell-rental-but-depre...
Short Version:
- Owned the rental for about a decade
- Did not rent during 2024, but did major remodel during the year.
- Mistakenly took ALL assets out of service in late 2023
- Sold property in early 2025
Background:
As a test I attempted to sell the rental in TT this year (2040) through 'sale of business property'. It asks for depreciation taken on the property, which I determined by adding last years (2023) Prior and Current Depreciation from the AMT Depreciation report. Okay fine, but...
Q#1
Is 'Business Items->Sale of Business Property' the correct spot to sell a rental when assets have already been converted to personal use?
Q#2
How do I account for other assets such as a roof or heat pump? Where do I add those into TT for depreciation recapture?
Q#3
If I deleted assets from TT years ago, (because they were fully depreciated thus having zero effect on taxes, and I didn't know any better), do I need to go back through decades worth of taxes to find each one in order to add them back in in the year I sell the property?
Q#4
When does depreciation recapture officially stop? Does it stop when I convert the assets to personal property, or when I put the rental up for sale, or the date the rental is finally sold?
Q#4a - Will depreciation recapture occur during the time between conversion of assets to personal use, and time of actual sale therefor forcing me to miss out on depreciation which will be recaptured?
Q#5
What form do I find out if the Oregon state depreciation was different from the Federal depreciation, and do I need to know that when selling the rental? After finding this Oregon information where would I enter it?
Thank you
