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What forms are used to recapture depreciation form a rental unit that has been sold. Also is capital gain calculated on the value of the unit at the time of sale or the listed cost of rental unit that was used in depreciation calculations on Schedule E. New Client would like to pay estimated tax on possible capital gain before end of tax year. Please advise on how to calculate and forms to be used to achieve these calculations.
Thank you
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This seems to be something you don't normally deal with when preparing taxes. I suggest you either do some research to understand how to report the sale properly or send your client to someone who does understand. No disrespect meant.
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@IRonMaN her question about the gain calculation has me shaking my head in disbelief... This is something every tax preparer should know before they start preparing returns... This is the reason the i r s wants to regulate tax preparers who do not have credentials and have them pass an exam... Just my opinion
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"Also is capital gain calculated on the value of the unit at the time of sale or the listed cost of rental unit that was used in depreciation calculations on Schedule E."
I'll give this poor person a clue...
Neither.
Don't yell at us; we're volunteers
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Please clarify this question:
<<Also is capital gain calculated on the value of the unit at the time of sale or the listed cost of rental unit that was used in depreciation calculations on Schedule E>>
If you don't know this, then you need to go to Turbo Tax. This site is for professional tax preparers. If you are a professional, you need to ask for help to learn the laws.
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@Accountant-Man @qbteachmt that is what I was referencing....
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This is a multi step process, not a quick simple answer.
You may want to google 'ProSeries Selling Rental property' and look at the various posts that come up, you may be able to piecemeal your way through the process....I dont see an actual Intuit Article for this, like they have with a 1031 exchange.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Thank you so much for the information. I appreciate your help. I feel you are a great asset to the Intuit Community.