topic Depreciation recapture on sale of a rental property in Deductions & credits

Depreciation recapture on sale of a rental property

jg71534 — Tue, 10 Mar 2026 07:21:06 GMT

Please help - I'm not sure why but it looks like i'm being asked to input my deprecation in determining the Cost Basis of the rental property I sold in 2022 --- and then to input it again under section "Depreciation After May 6, 1997". Must I input my depreciation claimed for time as a rental in both places?

Also how do I determine if I determine if depreciation claimed was AMT or not?

Re: Depreciation recapture on sale of a rental property

Critter-3 — Thu, 15 Dec 2022 22:19:36 GMT

Are you using the RENTAL section of the program ? Are you selling off the assets that been listed and depreciated while the property was being rented? Was the property rented in 2022 at all ?

Re: Depreciation recapture on sale of a rental property

jg71534 — Fri, 16 Dec 2022 17:23:34 GMT

Hi Critter-3! Thank you for the follow up.

I input the sale of my home solely in the "Less Common Income" Section, then "Sale of Home (gain or loss)". It was not a rental at all in 2022 as it was our main home for over two years dating back to spring 2020.

Yes we sold off two of assets that had been listed and depreciated while the property was rented.

Re: Depreciation recapture on sale of a rental property

AmeliesUncle — Sat, 17 Dec 2022 19:59:56 GMT

Yes, enter it in both places. This is one of the VERY FEW times you ever enter the same thing more than once into the program.

If the "placed in service" date for the rental was after 1998, your AMT depreciation for the house is the same as regular depreciation.

Be sure to fill out the area where it asks you for the number of days it was your principal residence and days of total ownership. Because it was your main home AFTER it was rented, you have "Nonqualified Use", which essentially means your $250,000/$500,000 home exclusion is prorated.

Re: Depreciation recapture on sale of a rental property

Critter-3 — Sat, 17 Dec 2022 23:16:13 GMT

Ok ... you do not enter the assets sold twice ... in the rental section you will convert them all to personal use to stop the depreciation. Then look at the total depreciation taken over the years by VIEWING the depreciation worksheet. Then armed with this amount you can sell off the personal residence in the HOME sale section and you will have the depreciation taken to enter when asked. You must recapture the depreciation taken while it was a rental ... this should show up on the form 4797 AND you must click the box for the 1099-S to avoid getting an IRS letter later ...