Should Depreciation for a sold property flow through to the following year after the sale?

[robert-a]

Rental Property in the previous year was sold and a mortgage taken back. On the Sch E worksheet, Box H was not checked in the year of sale, and subsequently, depreciation flowed through to Line 18 of the following year Sch E, for the sold property. There was a second Property purchased in the new year and so there are two properties listed on the Sch E. Why would depreciation come through for the sold property? Is it because the Box H - Complete Taxable Disposition was not checked in the year of sale?

If a mortgage is taken back for the sale, is depreciation given the seller when the property basis was not completely taken? Does the depreciation continue until the mortgage is satisfied and should Box H then be checked? Thnak you

[dascpa]

Why would depreciation continue on a property the taxpayer doesn't own?  This sounds like an installment sale in the prior year (I hope Form 6252 was filed).  The property should have been disposed when sold so it should not appear this year.  The installment sale for capital gain and interest income should be the only thing reported this year.

[robert-a]

The sale was 10/29/21. A 6252 was filed. The Sch E worksheet as stated, had an option to check box H, in ProSeries, for Complete Disposition. It was not checked. I am unclear why the depreciation flowed into 2022 and continues, and thought that was why. Tax program usage presented a challenge to me. Thank you for your interest in helping me.

[robert-a]

Is checking box H, in ProSeries, for Complete Disposition the solution?

If that is done, would the program should then not forward any depreciation sjcpa?  It was not checked and that is why I think depreciation flowed through to next year. I called Intuit but hey would not give me an answer as it is a 'tax' question. I think it is a program issue. Would you have a suggestion or answer about Box H being checked? Thanks. Robert