Schedule D line 19 and worksheet

[DanTz]

JamesG1 and DianeW777 have provided really helpful information on how to fill out Form 4797.

I am hoping you can help with how this information transfers to Schedule D.

I am a little confused with line 19 of Schedule D.

Does Line 19 Unrecaptured Section 1250 Gain Worksheet repeat the same amount that you reported as allowed depreciation from line 22 of Part III of form 4797.

Is this correct as it would like the depreciation was already captured and deducted on form 4797.

This would take you to deducting it again on the Schedule D worksheet.

 Example:

Total gain reported on line 7 of Form 4797 was $100,000

Depreciation allowed on line 22 was $20,000

Adjusted basis was $40,000

Is this $20,000 carried over to line 1 of the unrecaptured section 1250 gain worksheet?

Then this would be carried over again to Schedule D line 19.

This amount then would be used on line 11 of the Schedule D tax worksheet for calculating the taxes owed.

I would appreciate your help in understanding this.

[DanTz]

Community, can I please get a reply to my question about Schedule D line 19 and worksheet.

[DianeW777 · Accepted solution]

Yes, you are correct about line 19, Schedule D.  The depreciation portion of the gain is subject to a maximum 25% capital gain for 1250 property, assuming you have a portion of taxable income that is subject to a higher tax rate.  This is different than regular capital gain that is 0%, 10%, 15%, 20% maximum based on your taxable income from other sources.

• Your question: Does Line 19 Unrecaptured Section 1250 Gain Worksheet repeat the same amount that you reported as allowed depreciation from line 22 of Part III of form 4797. Is this correct as it would like the depreciation was already captured and deducted on form 4797. This would take you to deducting it again on the Schedule D worksheet.

Yes, the depreciation portion of the gain is carried to the 1250 gain worksheet and Line 11 of the Schedule D Tax Worksheet. 

• Your question: Is this $20,000 carried over to line 1 of the unrecaptured section 1250 gain worksheet? This amount then would be used on line 11 of the Schedule D tax worksheet for calculating the taxes owed.

@DanTz  Thank you for your patience.