I sold a rental property in Nov 2022, after purchasing it in 2018 as a 1031 exchange of an asset that I originally purchased in 2012. It was never a primary residence, and it was almost always rented including for 10 months of 2022, the year of sale. I have a large gain, but part of that should be taxed as depreciation recapture. However, Turbo tax isn't reporting the depreciation recapture on the sale of my rental property and is classifying all of the gain as capital gain, which I don't understand. How do I get it to separate the total gain into depreciation recapture and capital gain?
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How are you entering the transaction in TurboTax?
@ddy720 wrote:However, Turbo tax isn't reporting the depreciation recapture on the sale of my rental property and is classifying all of the gain as capital gain,
Are you saying that line 19 of Schedule D does NOT show the gain due to the depreciation? If it is showing up there, the program is likely doing everything correctly.
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