- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
Yes, there is a way to reduce the tax effect of the amount of depreciation “reclaimed” when you sell the house.
The losses that are disallowed on the rental are carried over from year to year.
You get to use them against any net income from the rental in any year you show a profit.
When you sell the property the total amount of disallowed losses can be used to offset your gain. So you will get a tax benefit in the year of sale for the expenses, including depreciation, that were disallowed and carried over.
@CescoP73
[Edited 02/10/2020|11:13PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
February 10, 2020
10:27 AM