So no matter claimed or not when I sell it, it assumes that I did the claim? Never heard such thing and it does not make sense. Need to find out. If this is the case, yes, I have to claim. But in TurboTax, whether you claim or not, it is optional. I believe if what you said is true, TurboTax would make the claim as the default or at least it would explain. Will do a bit research on this.
My thinking is: if a home bought at $100K. After a few years' depreciation, its value went to zero. Then I sell it for $200K so all this $200K will be profits and I have to pay tax for it. If I do not depreciate it, when I sell, I will pay tax on appreciation part (that is $100K). If this is the scenario, I like to know pro and con.
Thanks
My thinking is: if a home bought at $100K. After a few years' depreciation, its value went to zero. Then I sell it for $200K so all this $200K will be profits and I have to pay tax for it. If I do not depreciate it, when I sell, I will pay tax on appreciation part (that is $100K). If this is the scenario, I like to know pro and con.
Thanks