Question

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.

Forum|Forum|7 years ago
June 6, 2019
2 replies
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In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation from 2006 to now.

1- Can I report depreciation?
2- Im trying to start this year because someone mentioned me. But for what I see I will always have loss and no profit if I report depreciation.
Example; rent income - mortgage int - depreciation = negative(loss). Does this ok?

TurboTax Self Employed Online

C

Cattlerancher

Employee

Yes, TTPaulaM is right. You are required to depreciate whether to take it or not. You can still amend your 2013 tax return if you do it by April 15, 2017. Then amend your 2014 and 2015 to add depreciation to your rental.

P

PaulaM

Employee

Yes, you should claim the depreciation on your rental home, even if it produces a loss.

When you sell the home, the IRS will require you to re-capture the depreciation and pay taxes on it. Depreciation re-capture will occur on the sale, even if you don't take the deduction.

https://www.thebalance.com/depreciation-recapture-3192979

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O

obedrodriguezAuthor

Ok nice. One last question. When I reporting this Turbo tax ask for the Amount of Depreciation Taken in Prior Years. I know is 0.0 but turbo tax preset a value of $24,483 that can be change. Do I need to keep that value or I should enter 0.0 because I never report any depreciation ? Thanks