Hello, I was wondering if you were able to get resolution on this. I find myself in a similar position:
I have a rental property I bought in 2003 for 169K. In 2012 I put it into service for rent and have been properly claiming depreciation on it every year.
This past year I sold it.
Purchase price: 169K
Depreciation: 41K
Sales expenses: 17.5K
Sale Price: 350K
350K - (169K - 41K) - 17.5K.
The gain therefore should be approx $205K.
When going through the questions, Turbotax confirms the depreciation amount, etc. etc. So everything looks correct. But when I finish, and it shows up as income from selling rental property, it shows as $275K gain, as opposed to $205K.
And despite all my internet scouring, I can not get a straight answer. A few forum posts like yours mention it, but I never see a resolution, or people just blame depreciation, but I'm pretty sure my depreciation stuff is correct.
