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Investors & landlords
The simplest way is to show the hot tub as sold for $0. This way, the program will take care of deducting any remaining depreciation on the asset. (If you have any remaining balance to be depreciated.) It will also ensure that depreciation already taken is not recaptured in the future.
After you report this "sale" on your 2021 tax return, that will be the last tax return that asset will be shown on. When you import your rental data to the 2022 tax return next year, if that asset is shown then you can just delete it.
‎December 11, 2021
6:14 AM