Hi,
In preparing for my 2024 tax return, I have a question regarding depreciation recapture. I sold a home in 2024 which I initially purchased in 2018. I started a consulting business in mid-2020 in which I operated out of my home and for my 2020 return, I filed using the regular method and took a partial year depreciation expense. Now that I've sold the property in 2024, would I only report the actual depreciation I was allowed or allowable for 2020 forward and not any for 2018 and 2019? It doesn't seem correct to have to report for depreciation for years 2018 and 2019 when I didn't have a business (Sch C) or take any depreciation deduction on my return. I appreciate any feedback on this. Thanks!