Thanks for participating in today's event. You want to keep tracking your rental. First off, you get depreciation each year. If you don't use the benefit, you will still have to pay taxes on what you could have taken. Another consideration: If you are still making mortgage payments, the IRS sees you are paying on a previous rental and not claiming possible income. Even though you have a loss, they don't know that.
What happens if you never took depreciation on a property and then sold it?
IRS Code Section 1250 states that depreciation must be recaptured if it is allowable for the property. So, even if you don't claim depreciation for the years you owned the property, you'll still have to pay tax on the gain when you decide to sell.
Also, if you ever sell the rental and had carryover losses, you could take them against the gain and save taxes.
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