I believe I have resolution for this return. Thank you for the provided links to review prior discussions on these topics. PTO appears to be matching those discussions by not allowing either issue to affect the net results for Schedule E and 4797 entries. Some details that help with conclusion. My clients did not use the rental personally at all in 2021. Their rental expenses in 2021 were greater than their rental income resulting in an overall loss. So no carryforward expenses were allowed since no positive rental income to offset. Determining if any of the carryforward depreciation would possibly increase the basis of the asset (which appears to be questionable) is not considered at all since there was an overall loss for rental activity in 2021. Thank you so much. I learned a lot.