I've searched this topic, and I see conflicting answers. Some say to input this info under the rental properties and royalties section and others say to input it under sale of business property. Here are the details of my situation:
Purchased as primary residence in 2005 for approx $236,000
Put in use as a rental property in 2007
Sold in 2021 for $338,000
Depreciation during time as rental = $56,071
Commissions/closing costs paid at time of purchase and sale = $27,500
My understanding is that I will be taxed as follows:
Sale price +338,000
Purchase price -236,000
Comm/Closing -27,500
Difference +74,500
I know that I am taxed on depreciation amount also, but not clear on how that is figured in.
I completed the estimated tax worksheet to prepay in September, which calculated that I would owe just over $14,000. Now in TT, it is showing that I owe an additional $11,600. Does this sound correct?
