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Get your taxes done using TurboTax
I agree ... seek professional assistance but you probably don't have a loss to deduct in fact you probably have a taxable gain if you have been reporting the rental properly on the Sch E and taking the required depreciation.
Basically the FMV is immaterial ... you bought the home for an amount + the cost to buy + any improvements made - depreciation allowed or allowable + cost to sell = adjusted cost basis Selling price - adjusted cost basis = a profit or loss If you have a profit then the profit less depreciation recapture (taxed as ordinary income) = capital gain taxed as cap gain rate.
‎September 21, 2023
3:07 PM