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hbae115
New Member

Sold rental property in California in 2016. Should I take an one time special depreciation?

 
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Carl
Level 15

Sold rental property in California in 2016. Should I take an one time special depreciation?

There is no special depreciation for selling rental property. But if you acquired an asset in the year you sold it, if offered the special depreciation you should not take it in the same year you sell. That's because in the year you sell the property, all prior year's and current year depreciation is recaptured and taxed. (it reduces your cost basis). So if this is your case, don't bother.

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Carl
Level 15

Sold rental property in California in 2016. Should I take an one time special depreciation?

There is no special depreciation for selling rental property. But if you acquired an asset in the year you sold it, if offered the special depreciation you should not take it in the same year you sell. That's because in the year you sell the property, all prior year's and current year depreciation is recaptured and taxed. (it reduces your cost basis). So if this is your case, don't bother.

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