topic Recapture depreciation, Donated real property in Deductions & credits

Recapture depreciation, Donated real property

olds84tor — Sat, 28 Dec 2019 00:26:09 GMT

I donated a rental property to charity. How and where do I report the recaptured depreciation?

Re: Recapture depreciation, Donated real property

smarttees — Sat, 28 Dec 2019 04:11:19 GMT

From Zacks -- One of the biggest benefits of donating rental property is that the deduction is figured on the property's fair market value. For example, if you bought a rental home for $50,000 and claimed $20,000 in depreciation on it but it had a $100,000 fair market value, you'd be able to write off the $100,000 value. While the IRS sometimes limits your ability to donate depreciated properties, this limitation doesn't apply to depreciated real estate. When you donate property, you will need to have a professional appraiser prepare an appraisal report to establish its fair market value.

Re: Recapture depreciation, Donated real property

olds84tor — Sat, 28 Dec 2019 16:00:56 GMT

Thanks,

So, Do not concern myself with prior depreciation, just put FMV (appraised value at time of donation) on schedule A and attach Form 8283 section B. No need to use Form 4797 to figure recapture and report as ordinary income on schedule C. Even though the property was depreciated over a period of years. The FMV is far more than the Adjusted basis.

Since there is Up to 40% penalty if reported wrong, please be specific as to forms and procedure.