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Depreciation recapture for rental house sold

I bought an HVAC system in 2019 for my rental property and was pretty sure I used the Section 179 deduction. In 2024 I sold the rental property. In Rental Property and Royalties, TurboTax 2024 now lists the HVAC under "special depreciation." Do I need to recapture the depreciation? If so how? 

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1 Reply
PatriciaV
Employee Tax Expert

Depreciation recapture for rental house sold

If you took only special "bonus" depreciation for this asset, there is no depreciation recapture when the related property is sold. Verify this by looking at the Depreciation and Amortization Report in your TurboTax return. Section 179 and Special Depreciation are shown in separate columns. The total of Section 179 would be the amount to be recaptured.

 

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