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myhanhsj
New Member

Do I have to enter rental property depreciation when I sold it? I had not entered it before? Do I have to enter "sold rental property" and "sale property"? Or just one

I bought the property in year 2004, I lived in it for one year. I rented it 2006-2016, I filed rental property each year schedule E, I had a lot of expenses on the property. So, I had not entered rental property depreciation. I sold the property on Oct 2016, I rented it out Jan-March 2016. 

Do I have to enter rental property depreciation? If Yes.

How many years do I need to enter? and How calculate it?

Do I have to enter two places "Sold the rental property" and "Sale property"?

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view2
New Member

Do I have to enter rental property depreciation when I sold it? I had not entered it before? Do I have to enter "sold rental property" and "sale property"? Or just one

 Depreciation recapture comes from the Taxpayer Relief Act of 1997, which imposed the higher tax rate for all IRC Section 1250 gains, which for means all rental property investments. When you sell the property, you must “recapture” any depreciation you’ve taken “allowed” (or could have taken “allowable”). ( The IRS will TAKE IT  even if you had not claimed the depreciation in earlier years)

Even if it was just a mistake, you would treat it as an accounting method change and file a Form 3115 in the current year and take the  depreciation as a section 481(a) adjustment. 

Seek the help and advice of a CPA to maximize your benefits , the Form 3115 is a complicated process.

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view2
New Member

Do I have to enter rental property depreciation when I sold it? I had not entered it before? Do I have to enter "sold rental property" and "sale property"? Or just one

 Depreciation recapture comes from the Taxpayer Relief Act of 1997, which imposed the higher tax rate for all IRC Section 1250 gains, which for means all rental property investments. When you sell the property, you must “recapture” any depreciation you’ve taken “allowed” (or could have taken “allowable”). ( The IRS will TAKE IT  even if you had not claimed the depreciation in earlier years)

Even if it was just a mistake, you would treat it as an accounting method change and file a Form 3115 in the current year and take the  depreciation as a section 481(a) adjustment. 

Seek the help and advice of a CPA to maximize your benefits , the Form 3115 is a complicated process.

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