Thank you!
My question regarding carryover capital loss is in regards to Form 2210. There is a smart worksheet about capital gains for each of the 4 periods in 2022. I didn't enter the carryover and it does not seem to affect the year end number though. I think the year end number did account for the carryover. On another note, on this same capital gain worksheet for Form 2210, there was an entry for "uncaptured Section 1250 gain", which was automatically calculated for me in Schedule D line 19. When I looked at the numbers, I see that it's the depreciations allowed over the years minus carryover loss. Now what I don't understand is that this depreciation amount was already RECAPTURED on Form 4797 when capital gains on the rental property sale was calculated and shown on Sch D Line 15. Why do I have this as an "UN-recaptured" gain again? Am I being double taxed for the depreciation recapture? However, looking at tax summary, I don't seem to see this item.
The property I sold is a two family that I rented out one unit and occupied the other as main residence. The sale of my residence did not have taxable gain due to the $250K exemption. Do I completely leave this out of the return? I saw people saying that but wonder if I may need to enter that information for my state return (NJ)?
I really like your recommendation to file with the penalty and separately ask for penalty abatement/refund. If I do that, do I have to file Form 843 by paper separately (since I'll be filing the return electronically and have tax due debited from my account)?
Thank you!
