Coleen3
Intuit Alumni

Investors & landlords

The IRS requires it. When depreciation is taken on a business property, it must be recaptured at the time of sale.

Basis adjustment for depreciation allowed or allowable. You must reduce the basis of property by the depreciation allowed or allowable, whichever is greater. Depreciation allowed is depreciation you actually deducted (from which you received a tax benefit). Pub 946

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