I asked my tax pro this question, but thought I would post here too.
We took a bath on a real estate purchase. Bought it for $630K and will be selling it for $200K. The property is used as a rental and has had passive activity losses accumulating for about 8 years too.
I know the tax pro also includes a depreciation schedule in our federal filing each year for the property..
I'm trying to get a sense for what kind of tax benefit (if any) we will receive when we sell the unit. I'm not sure if there are limits to how much of a deduction we can take. Does AMT come into play? Does it need to be spread out over multiple years?
Any and all insight is appreciated.