Scenario
- House rented out 10 years ago and depreciated based on initial value of about $300k.
- Roof replaced 2 years ago and depreciated base on $9k cost (deductible part of the roof replacement). So I have two depreciation tables with different depreciation amounts.
- Sold the house in 2022. I entered all the sales data in the Home adjusted basis and the Home Sale Worksheet and it appeared to propagate correctly to 4797 and other forms . I then realized I must also include the "sale" of the depreciated roof asset and pay tax on roof depreciation recapture.
The first Turbotax question for disposition of the roof asset - Was this asset included in the sale of your main home?
- Answering Yes leads to multiple follow-on questions, finally ending in asset sales price and expenses.
- Answering No allows me to just fill in a sales price and expenses, and I entered both as zero.
However, a zero value on line 3 of the Home sale worksheet for the roof is red due an unspecified error. It also appears that schedule D line 38 still only includes depreciation recapture for the house, and ignores the roof depreciation.
Any suggestions on the most correct way to do this?
Should I split up the house sale total and enter a sales price for the roof, or continue to assume its part of the house where I already entered the sales info?
