Hello,
We sold a rental house in 2021 that we originally inherited from my parents but then refinanced, paid off my brothers and used as rental property. We never lived in the house.
I'm trying to enter the information in Turbotax as I've done our taxes this way ever since we acquired it. Do I split the sales price between the property and the structure? And then sell the depreciated assets 'separately' and just estimate the value?
Also, we live in Washington State and the house is in Oregon so we paid estimated tax on the sale to Oregon when it closed. Just want to make sure we get credit for that. My husband's income is from Oregon but mine is in Washington with no state income tax. I feel like the federal portion of our capital gains is not taking into consideration that we should only pay on the Oregon portion of all this gain and not our full income. Maybe this is over my head but I'm hoping someone can tell me a clear approach to working through all of this. I've always been so happy with how easy it was to follow Turbotax through the process but this is as clear as mud. Much appreciation to anyone who can make this easier for me to work through.
