Context: I bought a rental property in 2019 for 341K. When reporting for taxes, I have entered basis for depreciation as 266K (valuation by the county) as I didnt understand it at that point. 266K is used for depreciation deduction of ($5244). In 2023 return the "allocable share of the unadjusted basis immediately after acquisition" shows as $156400.
Question: I am selling the property now for 485K after spending 20K in upgrades and about 30K in commissions/taxes. My actual investment is 361K (341+20) and return in 455K (485-30). How does this relate to UBIA mentioned above? Will I pay long term cap gains for $106K ?
