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Investors & landlords
Depreciation on rental property is always figured on the lower amount, what you purchased the property for (your basis) or the value when the property is put into service.
You enter that into the TurboTax program when you list the rental.
Depreciation is taken year after year, there is nothing that you can do to change that.
The Depreciation recapture is reported as Ordinary Income (not capital gain)
The profit you realized (the amount you sold it for which is over what you paid for it) is Capital gains.
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March 5, 2023
2:48 PM