I recently sold an apartment that was used as my primary residence and then rented. Do I need to adjust for depreciation recapture even if I never claimed depreciation on it when I rented it?

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AI accountant’s answer:

Yes, you do. The IRS requires you to recapture depreciation on rental property when you sell it, even if you didn't actually claim it while you were renting it out. This is because the IRS considers that you were allowed to take the depreciation, whether or not you actually did. The depreciation recapture is treated as ordinary income and can increase your tax bill. So, it's important to factor this into your calculations when you're figuring out the tax implications of selling your rental property.

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