Related to that, I sold vacation rental in October 2021. If six months prior to selling the property, I clean out old assets and dispose of them in March 2021. In TTX, I edited each asset and marked them as disposed of in March 2021, and did the "Special Handling" option as mentioned previously. Do these disposed of assets still need to show a sales price at least $1.00 more than I paid for them (their Cost) to make TTX calculate the recapture correctly? These assets were all fully depreciated prior to 2021. I realize that we have to do this to make TTX happy, not necessarily for the sake of the IRS. It would seem to me though, that the IRS may ask why I sold an old asset for more than I bought it many years ago, especially if I disposed of it six months prior.
