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February 19, 2023
Question

Depreciation & Amortization Report for all prior years

  • February 19, 2023
  • 1 reply
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how do I find Depreciation & Amortization Report for all prior years (for a rental house)

    1 reply

    KrisD15
    February 19, 2023

    If you used TurboTax all the years you reported the rental, the Depreciation and Amortization (Form 4562) will be updated each year and included with your forms. 

     

    When you sell a rental house, there is usually "Depreciation Recapture" meaning if the house retained its value, that depreciation which was treated as an expenses year after year needs to be "paid back" 

    Depreciation recapture is Ordinary Income. 

    if there is also a GAIN, that gain is reported and taxed as Capital Gain. 

     

    Example

    House is purchased for 100,000

    25,000 depreciation was taken over the years

    Adjusted Basis is 75,000 (100,000 - 25,000)

    House is sold for 150,000

    25,000 is Ordinary Income

    50,000 is Capital Gain

     

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