@tj-21 Your answer looks correct regarding no recapture of depreciation in the year of the installment sale, when a straight line depreciation was used for a section 1250 property. It is also correct that you end up paying tax on that unrecaptured depreciation in each year that income is received on the installment sale based on the Gross Profit Percentage. This is accomplished because the GPP is higher than it would otherwise be if you were able to recapture the depreciation and put it on line 12 of 6252 as instructed.
Regarding part III of form 4797:
I can enter the amount of allowed or allowable depreciation on line 22 and 24 but it stops there.
There is no way to get line 31 to show the recaptured depreciation amount because you can not get line 26g to show anything but zero. This is because line 26 states "if straight line depreciation was used, enter -0- on line 26g.
Can anyone confirm or show me where I'm wrong? Thanks!
