- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
You may have a basis issue since it appears you converted your residence to rental use. As a result, you should have used the lesser of your adjusted basis or the fair market value of the property as your basis for depreciation.
That aside, however, you might want to enter Forms Mode and review your Unrecaptured Section 1250 Gain Worksheet, your Schedule D Tax Worksheet, and your Schedule D. You should note that depreciation recapture is taxed at your ordinary income tax rate up to a maximum of 25% (so it could be higher than the 15% rate you thought you would be seeing).
Ultimately, if you input the values correctly, the program will return the correct result.
‎January 21, 2023
10:39 AM