I have a "Sale of Business Property" income for this year. I sold a rental property, but it qualified for the full gain exemption. What is this from?

[cynicalnewenglander]

Hello, I hope all is well! I have a "Sale of Business Property" income in 2024 of $8,358.00. I sold a home that I purchased originally for 130k for 250k this year. It was a rental, but having lived in it for greater than 2 of the last five years before being a rental, it said it qualified for the full gain exemption. What is this income from? There are no additional details about where this was tabulated.

[RobertB4444]

The taxable gain that you're seeing is a recapture of the depreciation that you took while the property was a rental.  You got to deduct it so the IRS requires that it be taxable at the time of sale even if the rest of the gain is tax exempt.

@cynicalnewenglander