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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2316
Experience:  IRS licensed Enrolled Agent and tax instructor
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I held a rental property years. I am now selling.

Customer Question

i held a rental property for 10 years. I am now selling. i had a depreciation deduction of about 15K a year. but over the ten year period i rented the property I had unalloyed losses of 141K. So will i just pay recapture depreciation (25%) on 9k???
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
i held a rental property for 10 years. I am now selling. i had a depreciation deduction of about 15K a year. but over the ten year period i rented the property I had unallowed losses of 141K. So will i just pay recapture depreciation (25%) on 9k???
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you.
The calculation will be slightly more complicated. You will have to use the loss the reduce your or eliminate your capital gains first before you will be able to reduce the depreciation recapture. Here's is an good example of how it works: https://ttlc.intuit.com/questions/2553574-depreciation-recapture-on-sale-of-rental-property-for-gain
For example you have $250K of capital gains including $150 of depreciation recapture, your $141K losses will eliminate your $100K capital gains and $41K of depreciation recapture. You will still have $109K of depreciation recapture to report.
Sorry if this is not the answer you were hopping for. I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Expert:  emc011075 replied 1 year ago.
I see you read my respond but didn't get any feedback. Do you have any questions? Is there anything else I can help you with today?

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