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Sale of rental property questions

Forum|Forum|4 years ago
January 26, 2022
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How do I calculate total depreciation after selling a townhouse that was used as a rental since 1999? I know I have to pay tax on the total depreciation taken over the life of owning the townhouse. Is there a way to find the total already? Did TT keep track of this and put the total amount of depreciation taken since 1999 in the box labeled “Prior deprec.”? Or do I have to add all individual amounts from each previous tax return to the amount shown on this year’s return?

There are several assets at the rental that have also been depreciated over the years, such as new kitchen cabinets, windows, etc. Do I owe tax on the recaptured depreciation for those assets as well and, if so, does TT take that into account?

Best answer by AmyC

Yes, Turbo Tax kept track for you. You can use the prior depreciation total and add this year, if you have any current depreciation.

Each additional asset will need to be marked as sold, at a price of zero since you did not sell the items separately from the house. Those items can then be finished off as sold with the program making the corrections for you.

AmyCAnswer

Employee

Yes, Turbo Tax kept track for you. You can use the prior depreciation total and add this year, if you have any current depreciation.

Each additional asset will need to be marked as sold, at a price of zero since you did not sell the items separately from the house. Those items can then be finished off as sold with the program making the corrections for you.

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P

pcmaloneyAuthor

Since we sold the townhouse and put the profit in the bank, we’ll owe capital gains tax. Therefore should we plan on itemizing deductions? And, if so, where do we enter all our costs of selling the property?

R

RobertB4444

When you enter the sale of the property you will enter in how much you received as well as any expenses you had for the sale. TurboTax will walk you through every step.

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