1031 exchange and depreciation

Hello, I have a property I'm looking to sell and have some  questions about the 1031 exchange.  The property that I'm looking to sell  was originally 71,400.  The selling price will be about $90,000.  I figure  about $7,000 for cost of sale.  One of my questions is what is the  depreciation amount?  How do I figure this?  From the 1040??  I don't have  any improvements that I can think of.  Do you know of any state taxes in  AL?  I'm currently not living in AL, so I imagine I don't have to pay any.  Is this right?  I like the fact that your company is in CO.  So I do plan  to do business with you.  I appreciate your response.

 

Dear M: 1) Your depreciation allowance is an annual allowance.   If you do not have a running total then you will have to go back to your tax returns starting with your year of purchase.  Looking at your schedule E you then add up all depreciation taken over the years.  This is your accumulated depreciation.  Subtract the accumulated depreciation from your purchase price to arrive at current basis.  2) The general rule is that you must pay tax in the state where the property is sold and then if the state in which you reside has a higher state tax you pay the additional amount to the state where you reside.  However, if you do a 1031x then you defer both state and federal taxes. 

Steve Hickox
Attorney / President