Ysg
Level 2

Turbotax calculation error if selling home which was partly depreciated

If you sell a home which was previously used either as  a business or a rental there is a significant problem with Form "Home Sale Worksheet" and "Home Adjusted basis". I redid the calculations using IRS Pub 532 worksheets 2 and 3. Results are very different. TT is subtracting the depreciation previously taken from the exclusion rather than the gain and completely ignoring the steps 5&6 in the IRS form. The final check doesn't pick this up.