turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

ThankYouAll
Returning Member

Does the Depreciation Method Matter for Fully Depreciated Rental at Sale?

Hello, and thank you to anyone who can reply,

I'm doing my elderly father's taxes and want to do them correctly, of course. He always did them before and I've researched a lot to try not to bother all of you at this hectic time of year but here I am with my apologies and thanks in advance. :( Here goes:

 

--In 2021, my parents sold a rental home they had owned since 1980. They lived in it first and then rented it starting in July of 1985. They never used it personally after that. My dad used the 19-year depreciation method so it's long been depreciated fully that way. Even if he'd used the 27.5-year method, it would have been fully depreciated by now. Would the amount of recapture owed differ based on the method used since  the house would have been (was) depreciated either way? I want to be sure to pay the right amount. 

 

Thank you very much for any guidance!

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
ThankYouAll
Returning Member

Does the Depreciation Method Matter for Fully Depreciated Rental at Sale?

Additional note: It was the 19-year, straight-line method. 

Again, thank you!

ColeenD3
Expert Alumni

Does the Depreciation Method Matter for Fully Depreciated Rental at Sale?

No. The depreciation was fully recaptured, regardless of the method. By entering the 1985 date, the program will know how to handle the sale.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies