Long Ball Larry
Footballguy
Is there one for this year?
I am trying to figure out how to deal with unused depreciation on a rental property. Wife and I could not use the depreciation for 2015 and 2016 to offset income, due to our total income being too high. The property was sold at the end of last year.
I understand that we need to pay tax on the full allowable depreciation even if it was not used, but I see some references online that the unused depreciation can be used as a deduction as part of a sale? Can someone explain to me where to do this? The calculators that I see for determining the gain/loss don't seem to account for this. I am subtracting the total allowable depreciation from the original cost as part of the calculation, but I can't figure out where the offset might be for the unused depreciation. TIA.
I am trying to figure out how to deal with unused depreciation on a rental property. Wife and I could not use the depreciation for 2015 and 2016 to offset income, due to our total income being too high. The property was sold at the end of last year.
I understand that we need to pay tax on the full allowable depreciation even if it was not used, but I see some references online that the unused depreciation can be used as a deduction as part of a sale? Can someone explain to me where to do this? The calculators that I see for determining the gain/loss don't seem to account for this. I am subtracting the total allowable depreciation from the original cost as part of the calculation, but I can't figure out where the offset might be for the unused depreciation. TIA.
