Sold a rental last year for a profit…So for an appliance still in use but maybe 8 years old that is fully depreciated what does the IRS want? If it was $1000 brand new and it has depreciated fully the adjusted cost basis is $0….since it is old and fully depreciated I can put $0 for the sales allocation which wouldn’t recapture any depreciation I took or I can put $1001 which would essentially have all the depreciation I took taxed at 25%(in my case ordinary gains)….is that what they expect me to do? Have every penny of depreciation I took on all the items subject to 25% instead of just long term capital gains? Thanks
