In 2005 I purchased a property that I have been renting out. Purchase price was $255,000. I sold the property in 2023 for $325,000. I depreciated the home (value of $174,000) and not the land over the years. Total depreciation was about $114,000. Because of my income during the time I've owned the property, I haven't been able to take annual losses and have over $200,000 in suspended passive losses. I've run into a couple of issues: 1) the program isn't using the total cost basis of the rental property - it's using the depreciation basis ($174,000). If I change the depreciation basis, it calculates the current year depreciation incorrectly. 2) the program isn't applying the prior year suspended passive losses. Both issues are causing a huge gain and triggering Alternative Minimum tax. Current calculated gain is: $265,000 ->$325,000 - $60,000 (adjusted basis $174,000 minus $114,000 depreciation). How do I enter the information correctly into the program where it applies the carryover losses and uses the total cost basis of the property?
