I'm still engaged with my CPA, and shared with him what I calculated for an estimated payment we'd need to make in January. He responded by pointing out that proceeds from all the property we sold will be taxed at ordinary income rates (but no self employment tax) because the assets were all "section 1245 property", and we received deductions (either expense or depreciation) as we purchased/owned them, and now the IRS will receive parity on treatment when they're sold. This makes sense to me, but wanted to see if this is a nuance that TurboTax would pick up for me. I assume it would...the program would "know" that assets acquired in a Schedule C business would have generated ordinary income deductions when acquired, and should be taxed at these same rates when sold. And I assume that TT would not apply the self employment tax.
Can someone verify this? Thanks!
