M-MTax
Level 12

Investors & landlords

Nope, NO RECAPTURE of depreciation taken on the demolished house!

The house was demolished so it's value was $0.....it was not sold or disposed of.....it was demolished. 

This isn't any different than if you bought a computer for your business and threw it away after it was fully depreciated.....basis is $0 but so is what you got for it which is also $0.