I understand that I have to account for depreciation when I sell for the correct gain calcuation, but I can find no law that says I have to take it as an expense deduction. I do not get a taxable benefit from this, Due to passive activity limitations. I know when I sell the home, they will use " recapture methods" to get the basis for taxable gains. Each year there has been a loss due to management fees taxes and mortgage interest alone. I can only claim Zero income, no losses, because I make way to much. Someone is telling me its a requirement to file an amended return, and I can find no proof of that anywhere. Claiming it would " increase my Carryforward" losses, but I never get to use them, I make too much money. Why do I have to by law file this with the IRS? What law or regulation is saying I have too?
