Sale of rental property

[viccguard]

I entered the data for the sale of a rental property and was surprised by the TT results.  Specifically, the Cost or Other basis number /plus selling expense number that appears in form 4797 is substantially different than what I expected.  I can't tie to that calculated number based on the info I provided.  Is there a worksheet in the return that would show how TT calculated that number?

[Carl]

Without numbers, I have no idea what "substantially different" may be.

Be aware that when you sell rental property you are required to recapture all prior depreciation and pay taxes on it in the year you sell it. Two things about that.

- Recaptured depreciation is added to and therefore increases your AGI

- The increased AGI has the potential to bump you into the next higher tax bracket.

[viccguard]

Thank you for your response and I am aware of the depreciation issue.

My question was is there a worksheet in TT that shows how the cost basis/selling expense number on form 4797 was calculated?

[JulieS]

Yes, the Disposition Worksheet is used to calculate the gain or loss on the sale of business property. 

If you are using TurboTax Desktop (from a disc or download). You can find the worksheet in Forms mode:

1. Click on the Forms icon in the upper right corner.
2. Find Disp - Schedule E in the list on the left.
3. Highlight it and it will appear in the reading pane.
4. Click Step-by-Step to return to the interview.

In TurboTax Online, you can scroll through your printed copy of your tax return and locate the Disposition Worksheet. 

There is another worksheet called Enterable 4797, that contains this information as well.