I bought my condo in 2005 for $310,000. Rented it out in 2017, 2018 and part of 2019. Because of lockdowns, was unable to rent at all in 2020-2021. Spent $10,000 on repairs. Am paying $16,000 realtor commission.
I'm selling it for $277,000. I declared income on 2027-2019 returns. I have never declared depreciation. How will this impact my 2021 tax return - is it a deductible loss? Thanks.
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The issues you present can be complicated. Read the article below and pay attention to how your cost basis will be calculated. Be aware that even though you didn’t report depreciation you will have to recapture that depreciation when you sell.
https://www.taxconnections.com/taxblog/how-to-calculate-basis-of-a-primary-residence-converted-to-re...
RUN to a local tax pro to have the return for the year of sale professionally completed since you took NO depreciation as REQUIRED ... you need a pro to get you out of this mess.
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