Need help with Trust sale of rental house for capital gains tax calculations including effect of previous years depreciation deductions

[mwh77]

Sold my parents' house after renting it out for 10 years. The house was part of an Irrevocable Trust. Looking for advice on proper way to calculate capital gains to include any effect on depreciation deductions taken over the 10 years in was rented.  Trust calculated the depreciation using the SL 27.5-year period allowed by the IRS. I entered all data as requested by TurboTax Business 2021 Edition, but Captial Gains result seemed low. 

[Anonymous_]

Did you enter this transaction in the Rentals and Royalties section? Have you been using TurboTax Business to report the income/expenses from the rental from the beginning?

If so did you indicate that the property was sold? You need to start at that point.

[mwh77]

Yes. Property was sold in 2021...no I was not using TurboTax Business Edition for the prior years of rental Trust tax returns. Think I assumed that since TurboTax 2021 Business Edition asked for the total amount of depreciation for all other years that it would calculate the total capital gain for me - very confusing with the prompt for unrecaptured section 1250 gain when previously asked about date of step up basis estimate (i. e. 2009 is the way after 1986)

[Anonymous_]

You need to add the property as an asset in the Rentals and Royalties section. The program should then calculate your depreciation deduction and accumulated depreciation.

You also need to indicate that the property was sold in the program.