sold a condo

[muleskinner99]

purchased condo June 2015 for 83000

sold Feb 2021 for 131000  (seller expense was 9718)

over the years I added 7359 for new washer, carpet, dishwasher, water heater, etc.

I claimed depreciation of 13457 over the period.

why is turbo-tax recording 91000?  

my thinking is it should be 31094 after expenses are deducted and depreciation is added back.

please tell me where I am in error.

regards

[Critter-3]

Is this a rental property ?    If so the depreciation taken must be recaptured.  You need to sell off each asset individually so the selling price & cost of sale must be pro rated.  Review the form 4797 part 2. 

A simple example... using your #s

Cost basis 83000 + 7359 = 90359  - 13457 dep =  76902 adjusted basis

Sales price 131000 - (adjusted basis 76902 + cost of sale 9718)   =  44380 profit 

44380 profit - 13457 dep (taxed as ordinary income) = 30923 taxed as capital gains

[Carl]

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2021". Select it. After you select the "I sold or otherwise disposed of this property in 2021" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even if it's zero. Then you MUST work through the "Sale of Property/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1 on some assets. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1 on some assets.

Basically, when working through an asset you select the option for "I stopped using this asset in 2021" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.