You're not alone. TurboTax will work it all out as long as you make the appropriate entries at the time of sale.
Summary:
Difference between 25% and regular capital gains rates:
- Gain to the extent of depreciation will be taxed at your rate if lower but maximum of 25%
- Gain that exceeds the depreciation will be taxed at the capital gain tax rate regardless of your regular tax rate.
- Portions of the gain could be taxed at different rates depending on the amount of the gain that exceeds depreciation
@icnewer
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