@Carl first, thank you so much for your patience and complete answers to my many questions.
I do know that SC wants to tax me and will get me on the depreciation etc if we sell, that's why I have filed with them every year. We just haven't owed yet because the early depreciation and expenses were high. This is the year we use up our carry forward loss 🙄. What I meant is that the condo I am selling is in New Jersey and SC can't tax me on that, so selling it won't affect my SC taxes, so there's no point in amending them. At this point I'm leaning towards leaving it as is, but will try to find an accountant to speak with at least.
You said :
Most of those closer looks check out just fine. But there are those that "raise eyebrows" usually resulting in a letter from the IRS requesting some type of proof or verification for expenses claimed, or income received.
As an example, if one sees a significant reduction in rental income on a property from the previous year, that "could" raise an eyebrow.
That is the reason that I did not attempt to continue to claim expenses or depreciation. There was no reduction in income (relative to expenses), since we stopped claiming it as a rental. IRS isn't wasting time on us (unless the get those agents, lol!) We pay LOTS of taxes because we only claim the standard deduction. The SC condo has a management company, so no red flags to set off there, probably very similar to every other one down there.
As for the depreciation I didn't take these last 3 years on the NJ condo, it can't be more than $8000, so if I have to pay tax on that later if we sell the property we 1031 exchanged it for, I'll deal with it. I
