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All Forum Posts by: Armeen Mazda

Armeen Mazda has started 1 posts and replied 2 times.

Thanks @Steven Hamilton II!

I forgot to mention I will also have a capital gain loss on the property (net selling price - original purchase price).  

So is it correct that I can also carry over these capital losses along with the uncaptured depreciation to apply to future capital gains?

Will this only be triggered when I have gains from another investment property or will it be triggered if I sell my primary residence?

I have a rental property with the following situation:

-$155K of passive carryover losses

-$100K of depreciation taken

-$700K adjusted cost basis (purchase price less depreciation)

- $775K net sale (selling price less realtor fees)

So my question is:

1. Under this situation I owe no capital gains but I owe 25% recapture depreciation x $75K for federal taxes?

2. What happens to the $25K of the $100K total depreciation that wasn't recaptured?

3. Can I still apply the full $155K of passive carryover losses to my ordinary income or will this be reduced by the $25K deprecation that wasn't recaptured?