I dont think Turbotax is handling this correctly.
We have 43K depreciation taken during the time it was rented out.If I input 275K as the net proceeds from the sale TurboTax is showing a huge tax bill jump. Elsewhere I read the special basis rules apply when FMV at conversion < Original cost.
My understanding is that I will not be allowed a tax loss but I should not be taxed as if it was a gain. Can someone please shed some more light on this?
