Question

I sold rental property I never depreciated. I added the asset to show the sale but the software is adding depreciation against this year income. How do I remove it?

Forum|Forum|4 years ago
April 3, 2022
1 reply
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I don't want to change my accounting method. I just want to record the sale.

TurboTax Premier Online

Employee

You don't remove it. You are required by law to recapture and pay taxes on depreciation taken, or the depreciation you "should" have taken. Since you did not take depreciation, you will be taxed on the depreciation you "should" have taken. I look at it as the penalty for not having taken the depreciation when you were required to.