Who Determines my Rental Property Cost Basis? IRS? or Me?

Forum|Forum|1 year ago
April 1, 2025
1 reply
0 views

Will the IRS always use the same cost basis I reported in my tax returns when they calculate depreciation recapture after the sale of my rental property? Or they have their own way of doing that? If so, what kind of cost basis they will use?

Not A Product Question

KrisD15

Should be the same as what you used if you properly depreciated the rental.

They will use your basis and apply 27.5 years for depreciation to the property.

Land does not depreciate.

This is not to say that the IRS couldn't question what you reported as the basis, but they don't have a different method on file for your rental or anyone else's.

TurboTax uses the same method as that which is mandated by the IRS.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"