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Get your taxes done using TurboTax
Yes, since you need to recapture the depreciation, that results in a gain.
It doesn't lower the basis, it is "paid back" when you sell the asset. It is taxed as income, not capital gains.
If you have been using TurboTax to report your Schedule E rental activity year after year, the program will adjust for the depreciation when you report the sale.
The numbers you posted seem about right, the only concern I'd have is how you reported the 4,269 remodel.
Did you enter that as a separate asset? If so, part of the sale would need to be allocated to that asset as well.
If you expensed it as a repair, then you don't have to worry about allocating any of the sale proceeds to the remodel.
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March 27, 2020
7:03 PM