I just sold my condo in March 2022 with capital gain and trying to estimate by hand first the taxes portion before using TurboTax to file my 2022 income tax.
Sch. D line 15 shows $120,000 Net Long Term Capital Gain, total $63,000 for line 18&19
Form 4797 Part III line 22 shows $63,000 Depreciation, line 24 and line 32 shows $120,000 Total Gain (TG)
Form 1040-SR shows $190,200 Taxable Income (TI)
Form Sch. D Tax Worksheet, I have to use only TI number on line 1, TG number on line 7, total number line 18&19 (Sch. D) on line 11 to obtain the tax number on line 42 to be included on Form 1040-SR
Questions:
1. Is the tax number on line 47 of Sch. D Tax Worksheet is the total tax for the Ordinary Income and Capital Gain portions only ... but not the tax for the Recaptured Depreciation?
2. The 25% tax for the Recapture Depreciation will be calculated and added on separately by TurboTax?
3. I also have $4,000 unallowed loss from 2021 and the overall gain number shown on Form 8582 that was never asked to be used any where in calculating my tax estimation. Will TurboTax automatically adjust this loss and overall gain numbers to calculate the correct tax amount?
This would be the first time that I will use TurboTax to file my 2022 income tax to report a rental sale with capital gain. Could you please tell me if I am estimate my tax correctly or wait until I file my income tax to find out?
Thanks for your responses and advises.
