Rental Property sale

[Rfred]

We sold a rental property that we had in place since 2012 in September 2020.  When I enter the sale under the rental property, TT is not taking into account the cost basis/purchase price that I've been using for depreciation.   

What am I doing wrong?

In the depreciation tab I have the structure value at 150K and land at 30k - sold it for 365k, allocating 295k to the structure and 70k to the land.  Sale expenses were ~31k... TT is saying my income is the full 334k and not accounting for the cost basis minus the ~36k in deprecitation.

[ColeenD3]

Where are you looking to see this amount? You need to look on Form 4797 to see what is actually your gain. Part I will show you the land and Part III will show you the building.

Form 4797

[JohnB5677]

I think the culprit here is the depreciation recapture.  That would be the $150K for the building over 27.5 years.  That would be $5,545 per year, for 8 years would be an add-back of $43,640.

I would expect to see something like:

Gross Sale         365,000

Basis                  180,000

Depreciation         43,600

Adjusted Basis               141,400

Total Gain                       223,600

This calculation will appear in the 4797 worksheets.

If you pay the TurboTax fee you can see all of the forms.  

I can't tell what went wrong without seeing the return.