TurboTax not correctly calculating home sale capital gains tax?

[MarkSJCA]

Home & Business edition

Married filing separately, itemize

I removed all other income sources. $595,000 is 50% home sale gain, minus $250,000 exclusion; $345,000 is taxable gain. I have -$358,174 capital loss carry from 2023. Tax should be $0. But TurboTax says I owe $33,962.

What am I missing?

Thank you very much!

Called TurboTax support; it was a waste time. She told me I am only allowed to deduct $3000 capital loss per year.

[JohnB5677]

It would be best if you could look at Schedule D.

Everything will be posted to Part II.

If you are in TurboTax Online you can see and access all forms before filling.

To do this you must pay all TurboTax fees.

[MarkSJCA]

Thank you for the suggestion. But, it still doesn't make sense to me:

On Schedule D

Line 7:    -40,824 (short term capital gain loss carry over)

Line 10:  345,000 (correct taxable gain amount for home sale)

Line 14: -317,350 (long term capital gain loss carry over)

Line 15:  27,650 (net long term gain/loss)

Line 16: -13,174 (net of 7 and 15)

Line 21: -1,500 (enter smaller of Line 16 or -1,500)

Why do I owe 33,962 on a negative gain?

[KrisD15]

Was the property subject to depreciation? 

[MarkSJCA]

Thank you for answering.

This was primary and only home sale. No depreciation or any other special circumstances.

[DianeW777]

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:  (Don't forget to give us the state)

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.