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Deductions & credits
Since you rented out part of your home, that part is subject to depreciation.
Normally if you report rental income from that room, there should be respective depreciation expense to offset the rental income.
Depreciation decreases your home's basis. This means your capital gain gets higher when you sell this home.
Capital gain = Selling price - Adjusted basis
The software is probably trying to figure out this.
‎September 29, 2022
8:49 PM