Yes, you are correct about line 19, Schedule D. The depreciation portion of the gain is subject to a maximum 25% capital gain for 1250 property, assuming you have a portion of taxable income that is subject to a higher tax rate. This is different than regular capital gain that is 0%, 10%, 15%, 20% maximum based on your taxable income from other sources.
- Your question: Does Line 19 Unrecaptured Section 1250 Gain Worksheet repeat the same amount that you reported as allowed depreciation from line 22 of Part III of form 4797. Is this correct as it would like the depreciation was already captured and deducted on form 4797. This would take you to deducting it again on the Schedule D worksheet.
Yes, the depreciation portion of the gain is carried to the 1250 gain worksheet and Line 11 of the Schedule D Tax Worksheet.
- Your question: Is this $20,000 carried over to line 1 of the unrecaptured section 1250 gain worksheet? This amount then would be used on line 11 of the Schedule D tax worksheet for calculating the taxes owed.
@DanTz Thank you for your patience.
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