All Forum Posts by: Justin Bush

To both of you…thank you so much for the responses! Lauren, that’s the best explanation I could have asked for and makes it all very clear! Greg, hello from SW Michigan! Thanks again guys!

Recently sold a property at a loss and wondering if depreciation recapture should be taking place? For rough numbers we purchased property for $1.65M and sold for $1.35M. Owned for 4 years and had about $225,000 in depreciation during that time. To me that’s a $330,000 loss but accountant telling me it’s $135,000 because depreciation gets added back in. The reason we’d like loss higher is because we sold another property for a large gain and would like to hedge as much loss against it to cut gains tax on that sale. Thanks in advance to all and much appreciate any and all help!