@Stockholm Sweden wrote:
In June 2005 I purchased a condo for $378,200.
In April 2020 I sold this rental property for $300,000.
“The depreciation allowable for this property after May 6, 1997 is $173,221 ($150,708 for AMT)” - no clue what this means) -
You claimed $173,221 of tax deductions for depreciation. That lowers your "Basis" (similar to cost).
That means for calculating the sale, your Basis ('cost') is $204,979 ($378,200 minus $173,221). That gives you a taxable "gain" of $95,021 (adjusted for any selling costs that you did not mention)
So yes, adding $95,021 of income to your tax return can result in a lot of tax.
