Can someone help me confirm that depreciation recapture on the sale of a rental property is being computed in Turbotax? I see no evidence that it is.

[andrew-acer]

I sold a rental property in 2025. I meet the 2/5 year rule for having lived in it as a primary home, so we'll owe no capital gains tax. But, we took depreciation for 3 years, and that should be recaptured at sale. I downloaded the draft tax return doc before filing, and I don't see that captured anywhere.

[ThomasM125]

You can look on the Unrecaptured Section 1250 Gain Worksheet on line 12 to see the depreciation portion of the gain. It will flow to Schedule D, line 19.

[escpa]

That is helpful in terms of the depreciation recapture. Do i still need to prorate the gain in terms of its eligibility for the exclusion? I meet all of the tests.

[PatriciaV]

The proportion of the gain related to the rental activity is calculated by TurboTax when you indicate that you used the property as a rental in the past. While the full amount of the depreciation recapture is taxable, only a portion of the gain will be taxed.