@AmeliesUncle I checked the form after using method 2 in form 4797 part III it populates line 20-24. Which calculates my cap gains but it does not place anything in section 1250 in Part III which I think is for depreciation recapture. I think section 1250 ensures that recapture is taxed at 25% instead of long term tax gain at 15%. Plus it is taking the 4797 cap gains amount transferring it to schedule D where it is being lowered due carryover capital losses. I hope this is correct I see no other way. I was up until 1 am last night. Now I’m losing more time today.
