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Investors & landlords
It's perfectly possible that after depreciation recapture, what you call a loss, could in fact be a gain, meaning that at least some and possibly all of the recaptured depreciation would be taxable.
In your case, I would suggest you convert the property and each individual asset to personal use with a conversion date being the closing date of the sale. As you work through each asset add up the depreciation amounts (prior years and current year). Then report the sale in the "Sale of Business Property" section. You'll be asked for sales price, cost basis, and the total of all depreciation taken. This will allow the program to "correctly" figure if you actually have a gain or a loss to deal with.
‎April 22, 2021
4:27 AM