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Investors & landlords
That isn't real clear to me. First, I only see one place to change the cost basis and that is in the "Sale of Property/Depreciation" section. Changing that number makes it inconsistent with the two prior years returns and would seem to invite an audit since it obfuscates the source of the depreciation. It may be mathematically correct, but it's not very good documentation.
Second, I've read that this (depreciation recapture) should be a Schedule D entry in the "Unrecaptured Section 1250 Gain Worksheet". However, TurboTax does not give me an opportunity to add other depreciation amounts to this worksheet. It appears that line 12 on this worksheet is the correct place for this Home Office depreciation recapture entry. Can I just make a manual entry on this line in Forms mode? Or will this just hopelessly confuse TurboTax.