The way depreciation is handled changed. Now, any section 1245 or 1250 gains must be recognized in the year of sale. All of your depreciation is hitting you this year, instead of being spread out as it was in the past.
If the home was fully depreciated, that is a big hit for this year.
Key lines:
Line 5 - selling price - total value
Line 16 is the gross profit.
Line 18 contract price
Line 19 profit % - verify your numbers on lines 16 and 18
Line 20 - Form 6252 instructions state: If this is the year of sale, enter the amount from line 17. Really, for the rest of the calculations. Do not enter zero.
Line 21 - verify the payments you received towards principal in 2025 only
Line 24 -actual income for this year to be taxed.
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