recaptured depreciation

mtnman · Post by **mtnman** » Sat Apr 27, 2013 12:03 pm

Here is a question I can't seem to find an answer for and I'm sure it is a common situation.

Assume an asset has depreciation of $5000 and because of passive loss limitations the loss cannot be utilized. If the asset sells for more than the depreciated basis does the depreciation have to be recovered even though the passive losses were limited ? My gut says no but I can't find any reference.

Thanks

mtnman · Post by **mtnman** » Sat Apr 27, 2013 11:00 pm

Is this a really dumb question or did I not explain the situation clearly ?

nelsona · Post by **nelsona** » Mon Apr 29, 2013 9:25 am

If you have losses which exceed your loss limit, you carry these forward until ultimately, you get to clim then at the year of sale.

http://www.watsoncpagroup.com/blog/?p=62

mtnman · Post by **mtnman** » Mon Apr 29, 2013 11:12 am

Thanks Nelsona...I learned something new !