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Accountant-Man
Level 13
August 19, 2020
Question

Depreciation recapture

  • August 19, 2020
  • 6 replies
  • 21 views

I should know this, but. Client rented out part of her home. She died, and her estate sold the property.

I have the date of death appraisal. I am splitting the sale, but I need to know whether or not the depreciation claimed during the rental still needs to be recaptured. I think not, but still want your thoughts.

TIA.

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    6 replies

    sjrcpa
    Level 15
    August 19, 2020

    No. Estate gets a fresh start.

    The more I know the more I don’t know.
    BobKamman
    Level 15
    August 19, 2020

    Why are you splitting the sale?  Was the rental continued after her death? 

    Accountant-Man
    Level 13
    August 19, 2020

    Thanks, and yes, the rental continued after her death, but there was no more depreciation. Asset was completely written off.

    ** I am "Elevating with Intention!"
    Level 8
    August 19, 2020

    Doesn't depreciation start all over again after the property is inherited?