Sale of Rental. paid 75k sold for 65k. Depreciation 22k and have an accumulated loss of 24k. TT tells me I made 12k and owe taxes?

[edprinsloo]

I have used TT to do my taxes for my rental. paid 75k sold for 65k. Depreciated over the years 22k have an accumulated loss of 24k. A bad investment all round. I have not made a cent profit on this rental. TT tells me I made 12k and owe taxes? Please help.

[MichaelL1 · Accepted solution]

When you paid $75K for rental and then took depreciation of $22K on the rental, the basis or cost of the rental is now:

$53K (75-22) for tax purposes.

In the Rental section, you need to make sure that you answered the property was sold and the accumulated losses (losses that not have been able to be deducted due to limitations) are then applied.  Go back to rental questions and answer those questions and look at front of the Form 1040 to see if the $22K of losses is listed there. 

Now, make sure you took all the selling expenses (commissions, closing costs) on the return.

Also, make sure you allocated to all the assets listed on the depreciation schedule.  Most rentals need an allocation to the land.  

Look at this other answer below on the losses carryover:

https://ttlc.intuit.com/replies/6512188