Depreciation recapture on rental property

[danielf80]

I have heard that even if I don’t depreciate a rental property, I still need to recapture depreciation when I sell the property.  I’ve depreciated on my taxes about 3 of the 8 years I’ve rented.  Can I just recapture the amount that I depreciated when I sell or do I need to recapture what I should have depreciated?

[Anonymous_]

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@danielf80 wrote:

.......Can I just recapture the amount that I depreciated when I sell or do I need to recapture what I should have depreciated?

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You "recapture" the amount of total depreciation deductions that were allowed or allowable. As a result, it would not be advisable to forego depreciations deductions. 

If you failed to take depreciation deductions, you may need to file Form 3115 to catch up on total depreciation deductions that should have been taken. 

See https://www.irs.gov/instructions/i3115#en_US_202212_publink100035791

[danielf80]

Good to know. I initially made an error and did not depreciate the first few years of renting, but it got me thinking.  The property already has enough deductions aside from depreciation to offset any income and then some, so it seems depreciation would not provide a benefit in my case and lead to additional taxes when the property is eventually sold due to having to "recapture".  So that brought me to my question - Is it allowed to not depreciate or depreciate only as needed to avoid recapture later?

[Anonymous_]

You will have to recapture the amount you did not take in any event so it is in your interest to file the form to catch up (481(a) adjustment) on foregone depreciation deductions.

[danielf80]

Great thank you.