@Carl wrote:
If they did "in fact" take the SEC179 depreciation on the 2020 return, then that needs to be amended to remove the asset and recapture all that depreciation.
There is nothing to recapture since the Section 179 deduction would be suspended (and carried forward) until there was sufficient business income. If the rental is treated as a passive activity (as are many, if not the vast majority), then the income is passive and the Section 179 deduction would continue to be carried forward.
