When I come to this section: Select Sales of business or rental property that you haven't already reported. Answer 'Yes' to Do all of the following apply...? I CANNOT answer YES, because it ...
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When I come to this section: Select Sales of business or rental property that you haven't already reported. Answer 'Yes' to Do all of the following apply...? I CANNOT answer YES, because it was NOT a property I took a depreciation deduction for in any previous years. When you say NO, then it asks, is it a property that cannot be depreciated, and once again, it was not vacant land, mineral property or inventory. So, when I answer NO to this question, it asks for gross proceeds (none), and noncaptured section 1231 losses (transferred number from last year), then TAKES ME OUT back to the income page. It does NOT anywhere report the capital gains. This was a rental property that was a single family home. Owned more than a year, but never took depreciation in previous years. All info is entered correctly in Schedule E for the sale, and there is NO CHANGE to the taxes. Should I instead answer YES to all the above, even though there was not depreciation, and then just enter 0 for that number when it asks? Then file form 3115 for the previous year's depreciation that was not taken?