Sold property in another state in 2021 that I bought in 2006 for $270K. Sale price minus cost of sale was $314K. Prior to 2021 I used property as vacation home for 7-10 days a year and it was then rented for 3-4 months per year. I have claimed total $84K depreciation. Property, depreciation included, always produced $10-12K loss per year.
Questions:
1. Turbotax Premier is figuring out a $128K capital gain from sale of property and have an approx. $32K Fed tax due and $13K in state tax due due to sale of property alone. Q1a: Why am I paying my state of residency tax for sale of property in another state?. I thought only 25% of depreciation had to be recaptured but turbotax Premier is including all the prior depreciation. Q1b: Does that sound correct?
2. Turbotax Premier has carryovers from prior years that I don't know what to do with:
a) Vacation Home Operational expenses : $10K (approx).
b). Vacation Home Depreciation: $16K (approx).
3. I have a couple of assets that were put in service 2-3 years ago and didn't finish depreciating: e.g. A.C./furnace that cost about $4K and had depreciated just $2.4K. What do I do with that?
4. Finally, I never filed State tax before for the state property was in because property always generated just losses. Do I have to file that state tax now to report sale and capital gain?
Finally, Do you recommend I hire Turbotax help reviewing online my tax returns before I file or should I hire a CPA? I never had trouble before but I'm not sure sale of rental property is being handled correctly.
Thanks so much for any advice and/or help you can give me.
Alvarin
