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Updated almost 6 years ago on . Most recent reply
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Can Depreciation be adjusted if it's not limited in prior taxes?
I have 2 rental properties, Texas and Georgia. I sold one in GA in 2018 (which we purchased in 2007) and didn't do 1031 Exch. Now, the depreciation hit me back as gain when doing the tax report. However, I reviewed the prior taxes, the depreciations were captured as a write off against my wages in 2007-2009. But since 2010 until 2017, the GA rental expense/loss was limited due to "passive income" made in TX property with Form 8582. So, the GA depreciation was not fully captured against my wages.
Question: Can I reduce the depreciation of GA property in the tax reporting?
Thanks in advance for any insights.