Hello,

I have a client who came to me last year with a timeshare interest/rental (he has had since 2002) in which he says he never used personally.  He has now sold it in 2019, and I notice depreciation has never been taken (for whatever reason).   My concern is what he thinks is a large ordinary loss, may result in a very small loss, if not a gain due to the principle of allowed/allowable deprecation and phantom recapture.  What are your thoughts?  Thanks.