When filling out form 4797 for the sale of rental property, what go into line 2?

[lferdelman]

I assume it is the total depreciation Ive taken on the property since I purchase it.  If so, by taking depreciation on a rental property, I'm just delaying being taxed on the depreciation amount until I sell.   Is there a gain for taking the depreciation?  Do I pay less on a capital gain then I would pay on my regular tax bracket.   

[view2]

The law states that basis is reduced by depreciation allowed or allowable. If you don't take depreciation, the IRS will reduce your basis when sold anyway as if you had taken depreciation.    So even if you don't take depreciation the IRS treats it as if you did.the IRS will recapture depreciated allowed are allowable at a rate of 25%.

When reporting the sale of the rental property you are required to reduce the basis of the property for allowable depreciation regardless of whether the depreciation deduction was taken or not. For more information, refer to Publication 544,  Sales or Other Dispositions of Assets, the Instructions 4797, Sale of Business Property, and Publication 527,  Residential Rental Property (including vacation homes).