I might be having an issue with turbo tax in regards to it calculating the correct depreciation recapture rate. My tax bracket is 22%, and that is what it is using against the 48K in depreciation I took. I thought it was 25%, or is that a maximum limit only, and it can be less if your tax bracket is less? I tried to follow the schedule D tax worksheet, and it seems like that part is correct. But on Part III of form 4797, it only has values for lines 20-24, and nothing under line 26 for section 1250 property.
Could this be because under the rental properties SCH E tab, when the depreciated asset lists are shown, I selected that "special handling required" due to business use percentage of asset varied during the years you owned the asset.
