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How to find a total amount of depreciation recapture on a commercial property?
Author: admin // Category: Commercial Property
I’ve own a commercial property for the last ten years, and want to figure out the total amount of depreciation reported on tax returns. Do I have to look up all of the past tax returns and add them up or any other way to find them out?
By: Michael
About the Author:
By: Michael
About the Author:
August 8th, 2008 at 12:24 am
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The rule is depreciation “allowed or allowable.” If you claimed a depreciation deduction (and it’s reasonable in the IRS’ eyes) that’s the figure you use.
One would hope that your records are more complete than just copies of old tax returns but if that’s your only source of information, that’s what you must do.
If you didn’t claim a depreciation deduction (or claimed an unrealistically low one in the IRS’ eyes) you must calculate what would have been allowable and use that number even if you took less or even no deduction at all.