Carl
Level 15

Investors & landlords

Sorry, but with your numbers you don't have a loss.

Cost basis = 500,000 + 50,000 = 550,000

Adjusted cost basis in year of sale is $550.000 minus $100,000 of depreciation is $450,000

Sale price - $450,000

Gain = 0

With your numbers, taxation of the recaptured depreciation does not occur and there are no more losses to take against any other income.