your number do not make sense
We (myself and business partner) acquired a rental single family home on 04/19/2005 for $285,000. 50% ownership each. We put $5k into it immediately. I think that raises our basis to $290,000 (not sure). I'm filing returns only for myself. Sold the property for $315,000 minus a $4,000 credit to seller for closing costs (due to a bad AC unit). Closed on 07/30/2019. Each year that we owned the property I took 1/2 of the depreciation on my tax returns. 50% ownership did not change in any year. We had a lot of selling expenses, which I entered into TT.
TurboTax is telling me that I took $30,176 in federal prior depreciation (This contradicts the $80k you mentioned below and seems impossible. (with 50% of the building costing $158,000 - this excludes land cost- 2019 depreciation would be $3112. since it was acquired in 2005, 27.5 year life, it would be over 50% depreciated by 7/30/2019, I get $81872 in depreciation 4/19/2005 through 7/30/2019
It also says I have a gain of $79,140 on my disposition of the rental property and my depreciation for 2019 is $3312. I understand that I have to "re-capture" depreciation, but $80k seems high.
TT then reports I have a gain of $47,740 on my disposition of the land.
Do these numbers make sense? I don't think the Gain number is correct. I don't think TT is accounting for my 50% ownership.
no, the numbers do not make sense but this seems to be due to incorrect entries made by you over the years.
let's say you bought the property for $290,000 1/2 the cost you should have entered as total cost that would have been $145,000. then you would have needed to enter the 1/2 the cost allocated to land so TT would know the portion of the cost to depreciate. ($158,000 less land cost). it needed to be entered on the same worksheet as the house. Sorry that should be $145,000 lest the land cost
1/2 of the $315,000 selling price less 1/2 the selling costs needed to be allocated between the land and building based on relative Fair Market Values.
since we can't see your return or forms, you may need to see a pro to straighten out the numbers. too many things are wrong or inconsistent. you gain on both the land and building should be $157,500 less 1/2 the selling costs less 1/2 the cost of the land and building plus the depreciation you took (the larger of what you took or what you should have taken)
