Level 7
09-16-2021
03:44 PM
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I have a new client who sold a rental property in 2020 after renting it for nine years. She self-prepared all previous returns and the depreciation expense is essentially screwed up for almost all years, changing from year to year.
For purposes of depreciation recapture, what should I do here? Calculate the prior year depreciation as it actually was taken on Schedule E for every previous year? Or should I calculate the "correct" depreciation expense and put the cumulative amount down?
Thanks in advance.
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