Question

Sale of Rental Property

Forum|Forum|6 years ago
February 17, 2020
1 reply
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I purchased a home for $320,000. The land was valued at $100,000. Turbo tax has been giving me a recapture on deprecation using the $220,000 building costs. I have had $75,000 in recapture dep. I just sold the property for $275,000. If you take $75k from the $320,000 I purchased it for that reduces the cost to $245,000. I should have a capital gain of $30,000 without any costs. Turbo tax is giving me $130,000. How can this be corrected?

J

JFRAHER

Without seeing the forms, I will guess that you entered the $275,000 as the sale of the property plus the $100,000 of the land. If your total sale price is $275,000 you will need to allocate that between building and land. That should make your numbers come out right.

S

shawna909Author

Yes, The total price was $275,000. I reentered it as $175,000 for the asset and $100,000 for the land it is now correct. Where do I put in the 1099S though? The IRS is going to be looking for me to enter that info into the system? For the main home there is a place but not for rentals?