I'm using turbotax self employed to do my 2022 federal and state return. We sold a vacation rental property in 2022. The property was held for 9 years and turbotax was used every year. All of the calculations of the basis values for home, land and improvements including yearly depreciation work out fine if I report zero personal use of the property in 2022. The capital gains determined by turbotax are exactly as I calculate manually. However, if I report even a few days of personal use in 2022, Turbotax reduces the basis values for each line item that was sold, even land that has been held for 9 years! The reduction in basis for each line item is approximately equal to the percentage of personal use in 2022. For example, for 7 days of personal use and 78 days of rental, the reduction of basis used to calculate capital gains on sale for each line item is to 92%. (This personal use is below the 10% limit). This has a huge effect on my tax bill. I understand that personal use will have an effect on 2022 depreciation values and 2022 rental expenses, but these major changes in basis values suggest to me that there may be a bug in the turbotax program. Has anyone seen this?
