The furniture was properly depreciated over the 5 years, so that is not an issue. Also, the property is located in a state without state taxes. I am confused because when the CPA and I were discussing the furniture, he said that "you include the cost of all that was in the rental property when sold...whatever was put in as depreciable value gets added back in?" The furniture was in the rental property when sold, so my question is: Where does it get added back in when sold?
I know that the adjusted cost basis is the purchase price plus settlement costs MINUS the total depreciable costs of everything claimed over the years to recapture all the depreciation.
