1. The IRS will have you subtract depreciation allowed or allowable. However, since the second home, an investment property, was not being rented at fair value, you could not claim expenses, including depreciation.
2. Since this is an investment house, you qualify for the 1031 and will only claim depreciation on the years that it was rented at fair value and depreciation claimed.
3. Once a property is deleted, you have to manually enter all information again. However, there is no need to add the property back and amend the 2021 and 2020 returns if your son was living there independently and paying less than fair market value.
See Like-Kind Exchanges - Real Estate Tax Tips - IRS.
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