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June 24, 2022
Question

Should special depreciation from a prior year return be included when calculating the gain/loss basis for sold equipment?

  • June 24, 2022
  • 1 reply
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1 reply

June 24, 2022

yes. When you dispose of property for which you claimed a special depreciation allowance, any gain on the disposition is generally recaptured (included in income) as ordinary income up to the amount of the special depreciation allowance previously allowed or allowable.