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January 15, 2025
Question

we sold investment property for a loss purchased at $250k sold for $184k. Owned for 20 years

  • January 15, 2025
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    Employee
    January 15, 2025

    @wkekren , sorry , I do not know what the question is .  However, if this was a residential  income property ( rental ) then  the actual loss  may or may not be true  ( I am assuming here  that  the  depreciable basis  in the property was in the range of  150, 000  and  thus the accumulated depreciation , reducing the basis  by about 110,000 ).

     

    Please can you provide more  details of the case.

     

    If you are at a loss position, then  there is no depreciation recovery needed.  However, if there is any gain ( per form 4797 -- sale of income asset ),   all gain up to  the accumulated  depreciation is treated as ordinary income, the rest is given  capital gain treatment.

     

    Look forward  to hearing from you .