Given the increases in property values in many parts of the country that is not an insane example and is not far off from what I am looking at. In your scenario you pay long term capital gains at 15% on that other $100k instead of depreciation recapture at 25%, a difference of $10k in tax liability. As you can see these numbers are significant so I wish I knew if what turbotax is doing was legal.
TurboTax has an accuracy guarantee. Do I take the chance and if it ever gets challenged by the IRS call on TurboTax to pay any penalties and interest?
I probably need to start a new thread but I would like to hear from any user has successfully collected from TurboTax on their guarantee.
