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In the sell of rental your cost is the purchase price plus improvements less depreciation.
Your basis would be $217,500 -$4842 (this needs to be the depreciation in every year that you claimed) = 212658
Your difference in that and the sale price is the loss or gain
212,658 - 194,000 = 18658 loss
All the depreciation claimed is added back for calculating the basis to start.
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The full depreciation (all form every year has to be subtracted form the purchase price. So let's continue from there.
The full depreciation (all from every year has to be subtracted form the purchase price. So let's continue from there.
I do not know anything about an additional message from the site. I can only see this thread here.
If each year you took $4842 for depreciation then the total amount is subtracted from your purchase price.
If you started the rental in 2007 and you were able to claim $4842 in 2007 and then the same amount each year while it was rental (8 years of depreciation only because I know that first year you were not allowed the full amount) then you had $38736 used in those years as depreciation.
You have to subtract that from the purchase price.
217,500-38736 = $180764 as your BASIS
You sold for 194,000 so you had a gain. 194000 - 180764 = 13236
You have to subtract the true amount of depreciation you claimed on that house. I have just used these numbers as an example.
Checking back to see if you were finally able to calculate your true basis for the rental.