My mother passed away in 2008, and left her house to my sister and I. House was appraised at $267,000 then. We rented the house for 14 years, and sold it in 2021 for $320,000. Info on 2021 TT is the total depreciation recapture is $59,748. Settlement costs were $18,500., improvements totaled $39,508. Our Fed Form 4797 Part II Line 18 shows -14,286. Our adjusted gross income $48.637. That figure was transferred to Maryland Form 502.
Md has somehow come up with a total income of $122,170., total MD income at $83,982. and tax due of $5,709. They've told me the house sold with a gain of $59,748., which is also the depreciation recapture.
but have not told me how they've come up with that so I will be asking for an in-person appeal.
Can anyone give me some help understanding this mess?
