@leo-jyz wrote:
I noticed the amount I owe to the IRS was increased accordingly. I had expected the increase
Don't only base it on what you owe. You need to look at the entire tax return. It is possible that the 'extra' income affected other things on the tax return (for example, phasing out some credits or deductions), resulting in higher tax based on those 'other' things.
I would need to double check, but I have stuck in my head that the definition of "1231 Gain" automatically includes the requirement that it is for over one year and part of a business (therefore it would not need to ask a separate question about it). But as I said, I would need to double check to see if my memory is accurate.
I would also double check the worksheets within the program to verify that there isn't any non-recaptures 1231 losses that carried over.
Other than that, I'm out of ideas without actually seeing the tax return.
