Rental property with prior depreciation and carry forward losses
Rental home is torn down to build primary home
Trying to clean up on sch E and 8582 and seems the best way appears to dispose of the property
Basis of rental home (excluding land) is $400,000, prior depreciation is $80,000, Charitable donation of some of the home items is appraised at $100,000
Is the disposition or sale price $0?
If so, is the basis reduced by the prior depreciation and donation?
This is creating a huge loss, and wondering if anyone has any insight if this is correct, or if I going about this all wrong.
Or should the property to be marked as converted to personal use, do not calculate gain or loss, and recapture the depreciation later whenever the new home is later sold. 26 U.S. Code § 280B.Demolition of structures
Then include the charitable donation on form 8283