Hi both, thank you for all this help. I have a few follow up questions.
Section: Tell us about this Rental Asset
Cost - should this be the full cost of the property? 316,000? OR Cost minus the land portion?
Land - assuming I should take this from the tax records?
Depreciation: Can you say more about this please? I should be paying capital gains taxes on the full amount that was depreciated? So if for example 16K was depreciated in prior years and another 4K this year then I would have to pay capital gains taxes on 20K?
Section: Sales Information - if I assume 70% is property and 30% is land is the calc below correct?
Asset Sales Price : 450K sales price * 70%
Asset Sales Expense: should this exclude the mortgage? so just show legal fees etc. of 27K * 70%
Land Sales Price 450K sales price * 30%
Land Sales Expense: 27K * 30%
If this is the case how does it factor in the mortgage that was paid off?
When I enter all that information under the rental property it shows a depreciation amount of 4,949 and says I will have to pay capital gains on 129K which I know is not correct.
When I go back to Wages and Income I now see two sections under the rental section 1) Sale of business property which shows 20K - I'm guessing this is the depreciation amount. and 2) Sale of Home which shows the 129K.
Sale of Home: When I click through here It leads me to a screen that says
| Good news! You don't have to pay any income tax on this sale of your home because your gain of $108,069 was less than the maximum allowed of $250,000. |
but when I hit continue and get back to the main Wages and Income page it still shows 129K.
Should my taxes show both sale of business property AND sale of home for the same property sold? Is it being double counted?
Thank you for all your help!
