@FormerExPat As I understand the situation : (a) you converted your main home in ( located abroad) 2012 to rental property ( I am assuming that your " personal use" days were less than maximum allowed ); (b) you recognized the rental income, expenses and depreciation for the year 2012 through 2020; (c) because of your AGI you were not able to take advantage of losses from schedule -E and therefore have accumulated suspended losses for recognition at disposal of the income property; (d) the rental property was disposed during 2020 thus triggering gains/ loss computation and so form 4797, 8949 and schedule-D are in effect; (e) for some reason Schedule-E has been deleted for the tax year 2020
Given the above --- what I would expect to see is 1. gains computation based on sales proceeds ( Sales Price LESS sales expenses such as commission, title transfer costs including transfer cost, legal costs etc. etc. ) LESS adjusted basis (Acquisition basis LESS accumulated depreciation allowable PLUS cost of improvements over the period of ownership etc. etc. ) LESS accumulated & suspended losses. When you tell TurboTax that you have disposed off of income property, it should open a 4797, onto 8949 and then to schedule-D. The schedule-E should be a done first and a separate item -- it should cover all the costs and allowable depreciation for the year ( till the date of disposal ). Note all these amounts are in US$ of the day. Also US does not index the basis for computation of the gain/loss.
If you want more on this please consider giving me some rough ( and fictitious figures ) so I can actually work out the scenario and see if the TubroTax is misbehaving somewhere .
