TT cannot accurately report depreciation recapture from both current rental depreciation and past home office depreciation on the sale of a section 121 primary residence.
Details: We purchased home in 2018. We lived there as primary residence until January 2024. For each year lived there (2018-2023), we took itemized home office deductions, including depreciation on the portion of the house used as a home office, reported on Schedule C and line 42 of form 8829. On 1/31/2024, moved to a different state and put house into service as rental. Rented out entire house until 7/17/2025. Sold house on 7/17/2025. House qualifies for section 121 exclusion with the exception of the depreciation recapture from two sources: 1) home office depreciation on form 8829 line 42 from 2018-2023 and 2) rental depreciation on Schedule E in 2024 and 2025.
Regardless of whether I report the 2025 home sale in Schedule E *or* Sale of Main Home, TT accurately links the rental to the Home Sale Worksheet. However, TT only reports the depreciation from the rental. Even if I manually override the total depreciation taken on (or eligible) for the home in the Sale of Main Home section in order to enter the amount that reflects *both* the home office depreciation and the rental depreciation, the software automatically corrects it and defaults back to the combined 2024 and 2025 Schedule E rental depreciation only.
The end result is that I cannot get Form 4797 to accurately reflect the total depreciation amount. It underreports the amount by excluding the depreciation total from the home office depreciation and only recognizing the rental depreciation.
Please help.
