No, its is not the fault of the QI. The seller backed out of the sale and the breach of contract is now in litigation.
I did as you suggested, tagteam, and removed the Like-Kind exchange and only kept the installment sale. However, TT is not calculating a tax to be paid for the Depreciation Recapture. We have owned this rental property for several years and have 77,000 of accumulated depreciation.
I believe that I have to pay the full amount of recapture tax in the year the property is sold (2021) even though we received no funds at the time of closing. Funds were received in March 2022 for the failed like-kind exchange.
It's the calculation of recapture tax that I don't think TT is calculating for me. Any suggestions?
