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Investors & landlords
You are correct that the Home Office depreciation recapture is reported on Schedule D as you described.
When you stopped using the residence as your Home Office, how did you report this on your tax return? Were there any tax consequences of removing this home office?
If you know the amount to recapture, you may be able to add this to your Home Sale Worksheet Part IV - Exclusion and Taxable Gain. Lines 29B and 30 are "enterable," which means a manual entry should not trigger a form error. The On-Demand Guidance for both lines (right click the box & choose Data Source) refers specifically to a Home Office. The amount on Line 39 is carried over to the Unrecaptured Section 1250 Gain Worksheet, which should produce your desired result.
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March 1, 2022
5:55 AM