Ok, using TT2025 Premier Desktop. Trying to include the sale of a rental property in 2025. It was held long term. Cost of acquisition was 336,300 (of which 30,000 was land value). Sold in Dec 2025 for 306,100 which included $95,992.84 in sales costs, buyer credits, cap improvement (it was an OpenDoor sale). Depreciation to be recaptured including 2025 totals $87,400. Property was a single family residential rental (not my main home).
TT is not generating a Sch D or form 8949 for the sale of the rental property. It is showing the sale only on form 4797 in PART I, not in part II. It is then deducting the entire loss of -51,443 (the loss plus 2025 Sch E expenses and depreciation) as though it was 100% deductible in 2025 instead of being subject to a cap of $3,000 to offset ordinary income with balance carrying forward. I do have less than $100 in cap gains from stock sales it could offset, but I can't figure out why it's using the entire -51,443 for 2025. I think this is bug in the calculation tree.
