While I agree that we don't have sufficient facts (depreciation, etc) at this point to provide further help, your last paragraph does not make sense.
I don't believe you are inputting the correct information based on how the form 6252 flows.
Take a look at the actual form in TT.
Make sure line 16 is reflecting the correct gross profit; should be $20,000 (based on the limited information).
Then take a look at Part II of the form 6252 and review what amounts TT is reflecting and adjust your input accordingly.
Based on the limited facts (assuming no depreciation, etc.):
- Line 16 - $20,000
- Line 18 - $40,000
- Line 19 - .5
- Lines 21 and 22 - $10,000
- Lines 24 and 26 - $5,000
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
