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alvin4
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Prior Depreciation for a sold rental property: Asking for Total Depreciation Claimed & Total AMT Depreciation. TT calculates a big #, though I never took depreciation?

Is this the depreciation recapture section? I've read I have to pay that gain regardless of whether or not I've taken the deduction in the past (I haven't) but if I input the zero claimed vs. the TT auto calculation, my refund jumps hundreds of dollars?
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2 Replies

Prior Depreciation for a sold rental property: Asking for Total Depreciation Claimed & Total AMT Depreciation. TT calculates a big #, though I never took depreciation?


@alvin4 wrote:
I've read I have to pay that gain regardless of whether or not I've taken the deduction in the past (I haven't) 

 

That is correct.  

 

In TurboTax, if you took less depreciation than you should have (including not taking any at all), you enter the amount you SHOULD have taken (which is likely the number that TurboTax auto-calculated).

 

If you never claimed depreciation and have filed two or more years of tax returns without that depreciation, you should consider going to a tax professional to file a form to 'catch up' on the missed depreciation that you never took.

Prior Depreciation for a sold rental property: Asking for Total Depreciation Claimed & Total AMT Depreciation. TT calculates a big #, though I never took depreciation?

the tax pro will file tax form 3115 along with your return. that will allow for the deduction of the depreciation you never took.  unless amending prior return is an available option = see @AmeliesUncle response. 

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