Yes using the 2021 return to do a 2022 projection, the 94k is showing up on line 19 of schedule D. I assume this is because short term capital loss carryforward is now forced at zero (since it was all used up in 2021). There is nothing to offset the portion of the gain that is 1250 gain and recognized in 2021. I have to go on the Unrecaptured Section 1250 Gain smart worksheet of Form 6252 (Installment sales) and change line B "unrecaptured 1250 gain recognized in prior years" from zero to 94K. Doing some more research this appears correct. When I do the 2022 return, the 200k in gain recognized next year should all be at regular capital gains rates (0, 15 and 20). Turbotax should then be recognizing that the 1250 portion of the gain (the 94k in previous depreciation) was recognized in 2021 and there is no unrecaptured 1250 gain for 2022, correct??
Thank you for replying to me. I have been doing a lot of research. I am a CPA but went into my own business back in 2003 (used car and motorcycle dealership). I retired in 2018. Although I prepared my own business and personal returns (and my returns were somewhat complicated) I havent seen a situation like this in quite awhile and just want to make sure I am doing everything correctly. I would hate to have to tell my dad (who is 90) "hey dad guess what I made a mistake on your return and you owe another 20k in taxes." LOL
