@RobertG wrote:
Yes, there is a way to reduce the amount of depreciation “reclaimed” when you sell the house.
When you sell the property the total amount of disallowed losses can be used to reduce your gain. So you don't end up reporting depreciation you were not allowed to use.
@CescoP73
No, the full amount of depreciation is taxed no matter what (assuming there is at least that much of a gain).
When sold, the carryover losses do NOT reduce the gain. They are able to be fully used as an "ordinary" loss, but they do not affect the calculation of the gain nor do they affect depreciation in any way.
