Hello! I sold a rental home. I section 179 the HVAC unit that I purchased last year. Facts are:
I estimate the "gross sales value" at that date is $8,073 <-- based on its expected life and depreciation up until sales date (which was over one year)
Cost basis $8,650
Depreciated (fully under section 179) $8,650
I believe the full $8,073 should appear on line 25b (and subject to tax at ordinary rates) but for some reason the amount is only appearing on 26c I feel comfortable in the worksheet or step by step. I read through the worksheet and it does recognize that it was section 179 last year - it just is putting that amount in the wrong category resulting in it being taxed at capital gains rather than taxed at ordinary rate. I believe the full "gain" has to be recaptured at ordinary rates. Please let me know. Thanks so much!
