Sold Apartment House

[ruthc]

Client sold apt house in 2011 (she lived there too). Prior preparer did not depr the house at house, just depr items like carpeting, deck, etc). How does that work for sale of house and backing in all prior depr, if any. Thanks

[Lion]

Form 3115

Form 3115 (I think is the number) lets you catch up on missed depreciation without special permissions.

[Burke]

How does that work for sale of house and backing in all prior depr, if any. Thanks

You still have to consider all allowable depreciation in your calculation when handling the sale of the house, whether it was taken or not. Then complete 3115 for the year of sale.

[taxmom34]

is it possible that the house was completely done with depreciation? used it all up?

[taxea]

is it possible that the house was completely done with depreciation? used it all up?

That would depend on how long she owned it and how long there were rentals. I take it you did not do her taxes for all those years. These are questions you need to ask her. Specifically does she have the tax return copy for the year/s the rental/s were started.

[ruthc]

She bought the house about 10 yrs ago. Along with a manual depreciation worksheet, the prior preparer (she died last year) noted she was not depreciating the house. And it showed all the other years with the breakdown of items to depreciate. I guess I will just use form 3115. Thanks for thehelp!

[S T]

Allocation

Make sure the Allocation for the Property Acquistion is separated Land (non depreciable) and Bldg (depreciated) plus any other Add On Improvements since T/P has owned property.

And if T/p lived in part as personal residence - no depreciation on that portion - only the portion of the land/bldg allocated to rentals.

You will have one portion for personal residence and then a second portion for Rental

Sandy