If I don't claim depreciation, is the tax basis of the property still reduced?
October 19, 2006
If I do not claim depreciation for my rental property, is the tax basis of the property still reduced for the depreciation I should have claimed?
Date: 04 Oct 2006
Yes. The tax basis of depreciable property is reduced by accumulated depreciation allowed or allowable. There are some new procedures available to "catch up" unclaimed depreciation, including for the year of sale. See a professional tax return preparer for help.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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