Depreciation and 1031 Exchange

I will be doing a 1031 exchange of my rental property. I've been using TT to track the depreciation, although in some years due to income levels, I was not able to take advantage of the loss and thus the depreciation on the property. When I determine the basis of the property I am selling do I have to take all of the depreciation and add it back into the property or can I adjust this amount for years I was not able to claim the loss and the depreciation.

posted

those suspended losses remain suspended until you sell in a fully taxable transaction. your basis in the old property is net of all depreciation even the amount you couldn't deduct. the downside to a 1031.