robert26
Level 1
09-19-2024
11:47 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
No, you cannot enter "0" for prior depreciation if none was taken in the past. The IRS requires you to account for allowed or allowable depreciation when selling a rental property, even if you did not claim it. This results in depreciation recapture, which is taxed as ordinary income. Therefore, skipping the depreciation claim in prior years won't eliminate ordinary income tax; you'll still face recapture and capital gains taxes.