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Need Help with sold rental house!

  I bought this rental house in 2018 for 179K (land value $21331 base on appraisal)  plus legal fee and etc total of 186K.

I use it 100% for rental business.

My depreciation: $12969

I sold it in 2021 for 240K (land value the same $21331, so I put $218669 for asset sale and $21331 for land sale = total of 240K)

And I pay for commission fee and etc for 13K.

So my question is how I enter those information into the sale of Property/ Depreciation section? Am i filled them right ? Please see pictures below. I don't understand why my gain is $58190. I thought support to be 240k - 186K (cost of basic) - 13K (commission and legal fee) = $41000

Can someone help me if i did something wrong? Thank you so much

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1 Reply

Need Help with sold rental house!

your gain is sales price reduced by the cost and sales commission and increased by all the depreciation you've taken which is recaptured as section 1250 gain. from 2018 through 2021 you took 12969 thru 2020 +4221 for 2021 = 17190

 

218669+21331-186000-13000+17190=58190

 

 

you did nothing wrong. the gain is the 51k+

 

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