topic Recapture Depreciation Tax Liability in Deductions & credits

Recapture Depreciation Tax Liability

Obxtime — Sun, 09 Feb 2025 22:23:33 GMT

Purchased a property for $99,900 and rented it for 30 years. I am selling “as is” for $190,000 cash. How much is the recapture depreciation liability along with the capital gains tax?

Re: Recapture Depreciation Tax Liability

PatriciaV — Mon, 10 Feb 2025 18:53:51 GMT

Please clarify if you have reported this rental asset and took depreciation over the last 30 years. Did you use TurboTax last year?

Re: Recapture Depreciation Tax Liability

Obxtime — Mon, 10 Feb 2025 19:29:33 GMT

Yes I have done the depreciation for 30 years. No I did not use Turbo last year.
thanks

Re: Recapture Depreciation Tax Liability

PatriciaV — Wed, 12 Feb 2025 23:01:59 GMT

Enter the Rental Property and asset(s) in TurboTax by following the step-by-step interview. The program will ask about purchase price and prior depreciation, which will be used to determine the remaining basis (if any) in the property. The difference between the sales price and remaining basis will be a capital gain (or loss). Be sure you account for any major renovations that would have been depreciated on their own.

Most residential rental properties are depreciated over 27.5 years. So, it's possible that you have no remaining basis in the property. In this case, the entire sales price would be capital gain.

Additional Information: