Hello,
I'm having a hard time searching for this situation but imagine it had to be asked. Perhaps I'm typing the wrong search terms.
I recently sold a rental property and have capital gains and depreciation on it. I imagine this means I will have a larger than usual tax bill this coming year and wanted to know how I file that paperwork with the Federal Government and the Hawaii State Tax Collector.
I bought the home in 2009 for $365,000 and converted it to a rental in 2012 where I started depreciating the property. I sold the property in 2019 for 585,000 and believe I owe roughly 20,000 in depreciation, 30000 in capital gains to the Federal Government and another 30,000 to the State of Hawaii. Which forms do I have to fill out to make sure I don't get penalized for underpayment of taxes for 2019?
Thanks in advance! I've been using Turbo Tax this whole time so I imagine it is tracking all the actual depreciation, improvements, etc when I actually file taxes.
