OK - If I say the property has been a rental the entire time owned I get to proceed forward. If I indicate there's been different percentages of business use during the ownership period - it just kicks me out. The property was my main home for 2.5 years before being a rental for 8 years.
So I indicated the percentage of business use was consistent - although it never asked me what the percentage was. I then went thru and entered the information to calculate the gain on the sale - which came out to be $29K. Then it calculated the tax at $7,200! That's a 25% tax rate on a long term capital gain. The only tax rates available on long term gains are 0% (up to income of $51K), 15% (from $51K to $434K) and 20% (over $434K). So how is it calculating at 25% I'm definitely falling in the 15% income level - so what is causing the issue?
It's also saying I have a penalty of $167. Last I knew you didn't have to pay estimated taxes on capital gains. So why is it calculating a penalty?
I've used TT for more years then I want to admit to. This is the first time TT is causing me headaches and not calculating items correctly.
Please help!
