Do I have to take depreciation, since I am not getting the deduction and my other rental expenses cover the rental income?

[robert_lewis_333]

I bought the rental property this year and have a loss $3500 which is not deductible because income is over $150,000.  My other rental expenses exceed the rental in come so I don't need the depreciation

[robert_lewis_333]

Can owning a single rental unit be considered QBI? Will it do any good since it is a loss.

[Zbucklyo]

Even if it qualified for QBI, it doesn't matter since you had a loss on the rental.

[Coleen3 · Accepted solution]

Yes, you are required to take depreciation, even though you income level forces a carryover of your loss. Whether you take it or not, you will have to recapture the amount of depreciation allowed or allowable upon the sale.