LSTAX
Level 4
06-22-2020
07:11 PM
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I'm getting closer by following the instructions and entering two transactions per your link. I can make column 7 gain subject to recapture go on 4797 by entering just the gain amount as sales price and no cost and -1 in Depreciation allowed to trigger the 4797. That works and taxes at a higher rate.
The second scr 17 entry for capital gains - Do I enter the sales amount minus the 4797 amount and cost would be the amount from the 1099-B less the cumulative adjustment to basis? This results in a lower cost and more tax but I think it is correct. Column 5 cumulative adjustments to Basis is negative - do you read that as lowering the cost?