sale of a rental used for personal 2 out of 5 years.

[Young-TP]

Is the depreciation taken reported on the home sales worksheet? I cannot link it to the asset entry worksheet because it shows a loss on the home sale worksheet. I understand there is no depreciation recapture if the asset sells for a loss, but the asset entry still shows taxable depreciation recapture.

[TaxGuyBill · Accepted solution]

Most of the discussion is on this thread:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/sale-of-a-rental-by-an-...

The depreciation lowers your Basis.  So if it sold for more than the Adjusted Basis, you have a gain.  So yes, the depreciation is entered on the Home Sale worksheet and yes, gain due to the depreciation is taxable.