Depreciation Recapture

[taxu2]

TP sold rental home and never took depreciation on it. Is the depreciation recapture the amount they could have taken over the years? And is it added to Schedule 1, other gains, from Form 4797? Just wanting to make sure I report this correctly. 

[dascpa]

Depreciation is "allowed or allowable".

[Just-Lisa-Now-]

You may want to look into Form 3115 so they can take the deduction for the depreciation they forgot, since they have to recapture it anyhow.

[taxu2]

That would require an amended return for all the years they could have claimed it though, correct? 

[IRonMaN]

Nope

[Just-Lisa-Now-]

no the 3115 lets you take it in the current year, but the form itself can be quite daunting, Brass Tax does have a tutorial you can buy that goes through it line by line, its like $80 or something minimal like that, could be a good investment  https://brasstax.com/shop/   P.S. Im not affiliated with Brass Tax