Hello AmcyC,
Thanks for your response. Much appreciated. If you could respond back to my below questions, I would be so thankful.
I understand your answer and the reasoning/logic/math behind it.
So my sale of rental property that used to be my primary residence falls in the inbetween range so no gain or loss should be reported to IRS.
But the issue is:
1. How are we supposed to get TurboTax Premier 2020 to calculate it correctly so that its shows no gain or no loss?
As when entered (by following the software prompts) it finds a gain (where my sale price is above the FMV but much below my original purchase price). I can share the math if needed, let me know.
As of now, Form 4797, part 1 gets populated with line 2 as follows:
a. property description
b. date purchased
c. date sold
d. gross sales price - which is more than my FMV but less than my original purchase price
e. total depreciation taken
f. cost basis which is my FMV plus selling expenses - which is less than my sales price and my original purchase price
g. gain or loss - Math done by software is: line 2d plus line 2e minus line 2f which is resulting into a gain which is correct math but since my sale falls inbetween the range (as discussed in your answer), this should not be a gain nor a loss, thus a zero but its not.
2. I can get the software to work and show a zero but that requires "sort of" making up the cost basis (as original post suggests) which I am debating on doing or not. Thus, if the software is not able to do this correctly, what form can I manually fill to report this correctly and which part/section/lines in that form need to be populated would be a great help if you can share.
3. Would you say that even when form 4797 is manually done, part 1, line 2g should be put down as a zero even when you do the math it asks to be done results into a positive number?
