Where is depreciation capture reported?

[freshy70]

My client used his home for business. I have calculated the depreciation recapture amount on Form 4797 line 7. The rest of the home sale gain is excluded. Where does that number get factored into the tax calculation. I understand its taxed at 25%. Does it flow to another Form?

[sjrcpa]

Why use the 4797?

Why not use the home sale worksheet and enter the depreciation there?

[freshy70]

Not sure how to do that. I just reported the asset sale on the disposition screen from depreciation and form 4797 generates. Is there some other way I'm supposed to do this?

I did notice after my original post that this diagnostic triggered: "Depreciation asset #1: Sale of Home Worksheet - Gain or (Loss), Exclusion and Taxable Gain were not completed because the home was used for business in the year of the sale. See Publication 523 for more information. US - Ref #2008379"

[sjrcpa]

I would skip "the asset sale on the disposition screen from depreciation".

Enter the sale where you enter a home sale/stock sale, etc.

But that's me.

[TaxGuyBill]

If it is showing up on line 19 of Schedule D, you should be good.

[George4Tacks]

https://accountants.intuit.com/support/en-us/help-article/form-8949/reporting-sale-home-individual-r... MAY help

If you have the full value of the asset, but it is only some % being taken in the Schedule it goes to, then I do not think the link covers that.