@ajkrause wrote:
nstead I should use the original purchase price $250K + capital improvements $55K -claimed depreciation $22K = $283K as basis at time of sale. If so, then I don’t know how to enter that into TT. Thank you.
The first part is correct, the second part is wrong. You use your actual Basis ($305k), but you need to use the depreciation that you COULD have taken.
For how to report it, just go in and edit the "asset" and enter the correct information ($305). But you need to be sure to use the correct "prior depreciation" by entering that you COULD have claimed.
Then just continue in that "asset" and indicate it was sold.
Because you need to reduce the Basis of the depreciation that you COULD have claimed, you may consider amending prior tax returns to correct things and actually claim the proper amount of depreciation.
