Hi,
I inherited 1/2 interest in a real estate contract that my parent's had carried in 2014. They filed Form 6252 from that year till their passing in 2022. I followed the prompts in TurboTax to create an installment sale on my tax return. I used 1/2 the contract price, 1/2 the cost basis, 1/2 the fees to process the sale (RE commissions, and 1/2 the Escrow costs....). I use 1/2 the prior years principal paid (line 23). This results in the same Gross Profit percentage as they had. I use the same Date Sold and code (1) as they did. I only received principal payments and interest for both November and December on the year I am filing. Everything looks good except TurboTax states that I have depreciation. None of the prior form 6252 show depreciation on line 9. This is a sale of 4 or 5 real estate lots without any buildings. I do not believe you can depreciation raw land. Is it correct to show depreciation? If not, is there a work around to eliminate the depreciation? TurboTax also asks if I want to use the same amount of depreciation on my regular and AMT process. Help!
Thank You,
Mark
