zscottie
Returning Member

Depreciation recapture on partial rental of personal home

Hello:

In 2020, I sold my home of 17 years.  During the first 10 years, I rented out 1-2 rooms and deducted depreciation accordingly. The last 7 yrs I used it exclusively as my personal home.  I figure I have 28K in depreciation recapture.  My question (I'm using TT Deluxe right now...may upgrade to Premier).  How does TT account for the depr recapture when you have partially used the property as a rental?  Using Deluxe, and after I enter in my depr recapture in the "sale of home" section, it appears to capture the depreciation on Schedule D.  I would have expected on Form 4797, and been taxed at a higher rate.  Am I doing something wrong?  Or would using TT premier help to calculate things correctly?

M-MTax
Level 10

Investors & landlords

It's computed right because there's some sort of tax worksheet that figures the amount of unrecap Sec 1250 gain for the depreciation........you don't need a higher level of TT......there's no 4797 because the home was not a rental at the time of the sale....it was being used for personal purposes.