- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
Depreciation MUST be taken and recaptured as ordinary income when you sell which reduces the capital gains on the return.
Simple example :
Purchase price + cost to purchase = cost basis
cost basis - depreciation taken = adjusted cost basis
sale price - adjusted cost basis + cost of sale = profit or loss
Profit - depreciation recaptured as ordinary income (form 4797) = capital gain or loss (Sch D)
‎September 28, 2021
10:38 AM