M-MTax
Level 15

Investors & landlords

How'd you get $39,019?

 

Your basis is reduced by the $16,000 depreciation deductions so it's $320,000 less $224,000 ($240,000 - $16,000) which equals $96,000. The $16,000 is subject to recapture. Then make sure you entered the selling expenses of $16,981.