It's tricky, you may want to have you taxes done professionally this year.
The term is "recapture" depreciation, not recoup. "Recoup" sounds like you expect to get a tax benefit. In actuality, recapture means you pay tax on the depreciation you claimed in the past, when you sell it. The entire capital gain is taxable. As you know, you not get any credit for having used it as a residence.
Add the $25,000 upgrades to your original cost basis.
Since you are not filing a Schedule E (rental income); In TurboTax enter at:
In TurboTax, enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to:
- Less Common Business situations
- Sale of Business property - click start
