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Investors & landlords
if you are reporting the total cost of the property as $207,000 and land as $72,900 the tax basis of the building for depreciation as calculated by Turbotax would be $207,000 - $72,900 for a tax basis of $134,100
if this is wrong seek professional help because your reporting all these years would be wrong. if the building should have been $207,000 the IRS requires you to recapture depreciation as if you had taken it on this basis.
the correction would require filing form 3115, for which I strongly advise the use of a pro.
tax basis of building $134,100
depreciation taken $24,233
net $ 109,867
sales price net $185,000
gain $185,000 -$109, 867 = $75,133 nor sure about the $100 difference
‎April 25, 2022
2:12 PM
1,093 Views