Rental prop in service May 2009. House was not rented until Jan 2010, sold Dec 2017. I did not take depreciation allowed in 2009. Do I still add 2009 to total dep?

lafoonr · ‎June 4, 2019

I am trying to determine total depreciation taken on a sold rental property. The house was placed in service May 2009. Rental stayed empty until Jan 2010. My "Asset Life History, yearly Allowable Depreciation" worksheet shows my AMT deduction for the year 2009 was $1286. I did not take the depreciation for 2009. DO I still need to add that as a part of the total depreciation on form 4797, Part I, 2(e)? Actual depreciation taken/reported was 2010-2016 $2057 per year ($14399), 2017 $1872. Total actually reported over the years $14399+$1872=$16271. Do I still need to add $1276 for 2009 even though I did not take it?

PatriciaV · ‎June 4, 2019

Unfortunately, the IRS rules require you to include all accumulated depreciation for your property when it is sold, even if you did not take the expense in prior years. Depreciation begins when the asset is placed in service.

Here is the reference:

Rental Property IRS Pub 527 Claiming the Correct Amount of Depreciation "If you did not claim all the depreciation you were entitled to deduct, you must still reduce your basis in the property by the full amount of depreciation that you could have deducted."

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Rental prop in service May 2009. House was not rented until Jan 2010, sold Dec 2017. I did not take depreciation allowed in 2009. Do I still add 2009 to total dep?

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