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Where can I find the info needed to determine depreciation recapture and taxable gain on sale of rental property?

Previous returns were filed using TurboTax.  Sold property for a gain.  Property has been partially depreciated.  Ultimately, I'm trying to figure out how much to pay right now in estimated tax for 2020, but I need to find my historical depreciation figures.
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Carl
Level 15

Where can I find the info needed to determine depreciation recapture and taxable gain on sale of rental property?

You don't see the "History" per-se. You just want the total amount of depreciation already taken. You'll find this on the IRS Form 4562 in your 2019 tax return. There are two form 4562's for each rental property you own. Both of them print in landscape format. One is titled Depreciation and Amortization Report, and the other is Alternative Minimum Tax depreciation. It's the Depreciation and Amortization Report you will need to look at most likely.

These forms are not filed with your tax return unless something on the form changes - such as selling, adding, or disposing of any asset. So to get the form you need to download the PDF file. That PDF file will have *everything* in it, including both 4562's for the rental property. Just add together the amounts in the Prior Year's Depr column and the Current Year Depr coloum to get the total amount of depreciation already taken.

When you report the sale of the property using TurboTax, report the sale in the Rental and Royalty Income (SCH E) section of the program, and the program will take care of depreciation recapture and everything else "for you".

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2019". Select it. After you select the "I sold or otherwise disposed of this property in 2019" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even it it's zero. Then you MUST work through the "Sale of Assets/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1

Basically, when working through an asset you select the option for "I stopped using this asset in 2019" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.

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