doubleg10
Level 3
07-13-2020
12:52 PM
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Taxpayer owned residential real property for 45 years and it was fully depreciated. Property is fully rented. Spouse dies in 3/2018 and surviving spouse gets a step-up in basis at DOD and begins to depreciate the rental property again. New basis and so depreciation starts again. Taxpayer sells the rental property in 7/2019. After computing the adjusted basis which includes selling costs and depreciation taken, the gain on sale in $10,200. Depreciation taken is $3,600 and so ordinary income is $3,600 and LT gain in $6,600.
I am having difficulty within ProSeries to separate the gain into ordinary income and long-term capital gain. I would appreciate any suggestions given.
Thank you.
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