How do you recapture the depreciation of rental property building-condo sold in 2018ndo on 2/2018?

[TaxGuyBill · Accepted solution]

When you enter the sales information on the Asset Entry Worksheet, the program should calculate the proper tax, including the tax on the gain from the depreciation.

[Just-Lisa-Now-]

Bill have you run across any asset entry worksheets that the Prior Depr is missing? I find them randomly in my clients, I use the asset life history to fill in the blank spot, its really random though, Im wondering if there was a transfer bug multiple years ago that this info didn't carry over.

[TaxGuyBill]

I know that if you enter an asset that was previously "placed in service" (such as if you get a new client) and if you don't enter the "prior depreciation" then, it always remains blank until you sell the property, then it makes you enter it.  In the meanwhile, the program just calculated the depreciation based on what the "prior depreciation" should have been (based on current year's information).  So perhaps that is what is happening?

[Just-Lisa-Now-]

Could have been, I inherited all these client files from my boss when he retired...they may have come from him like this.

[Just-Lisa-Now-]

Was just curious if youd ever run across it, like it was a glitch from years ago or something.