Where to enter sale of rental if was used as main residence prior to use as rental

[mespinool]

I've searched this topic, and I see conflicting answers.  Some say to input this info under the rental properties and royalties section and others say to input it under sale of business property.  Here are the details of my situation:

Purchased as primary residence in  2005 for approx $236,000

Put in use as a rental property in 2007

Sold in 2021 for $338,000

Depreciation during time as rental = $56,071

Commissions/closing costs paid at time of purchase and sale = $27,500

My understanding is that I will be taxed as follows:

   Sale price           +338,000

   Purchase price   -236,000

   Comm/Closing   -27,500

   Difference           +74,500

I know that I am taxed on depreciation amount also, but not clear on how that is figured in.

I completed the estimated tax worksheet to prepay in September, which calculated that I would owe just over $14,000.   Now in TT, it is showing that I owe an additional $11,600.  Does this sound correct?

[KrisD15]

Depreciation recapture is taxed at your income tax rate 

If you are in a  20% tax bracket, tax on 56,071 would be over 11,000. 

[mespinool]

Thank you - also, does it make a difference allocating between structure and land?  When I enter in the business sale section instead of rental section, it doesn't have fields to differentiate.

[AmyC]

Actually, for the Turbo Tax program you will enter it as the sale of main home and it will ask Did you use this home for anything other than primary home? Then you will fill in the information and the program will move it to all the right places. Follow these steps:

1. Go to the Federal Income section
2. Scroll down to Less Common Income
3. Sale of Home start/ edit
4. Sell home, yes
5. continue
6. address
7. continue
8. sales information
9. continue
10. purchase information
11. continue
12. Time in home
13. Yes
14. Did you use this home for anything other than primary home?
15. Yes
16. # days
17. Sell another home?
18. Depreciation? YES
19. Enter depreciation - regular and AMT
20. continue
21. Spouse died?