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Deductions & credits
I'm not seeing or understanding the problem here, as I"m making assumptions since I don't have the whole picture. I assume you sold rental property.
In the year of sale you are required to recapture the depreciation and pay taxes on it. Basically, one way to look at it is that the recaptured depreciation lowers your cost basis. Another way to look at it is that the recaptured depreciation is added to your sales price. So *exactly* what is wrong here? Again, I don't see a problem because you haven't provided enough information to give the reader the whole picture here.
‎June 11, 2020
1:16 PM