ShetenhelmCPA
Level 1

I am trying to do a trust tax return and it is calculating capital gain and depreciation recap on a rental incorrectly - it is including in the capital gain the amount of 1250 depreciation recap - and it is adding in the recap - adding additional income

It is not an easy tax return - have a rental sale that has never been depreciated - so 3115 to catch up depreciation - and then the large 482 adjustment to catch up 20 years of depreciation - on a corporate or partnership return there would be an ordinary loss - and that would net with the depr recap - this seems to be taking the rental loss away from each cap gain and 1250 recap - it is not calculating correctly - but if it was ord income loss - it would net with the depreciation recap and you would get the capital gain favorable rate on the income left over

 

first of all - needs to be adding correctly - but when you allocate the loss can you put it against the larger tax - the depr recap? 

 

I have done all my updates and refreshed them a couple times - and it is still adding up incorrectly - in 2020 proseries 2020 software

 

please help!

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