Question
Gain on Rental Property, Depr. Recapture
Client sold a mostly fully depreciated rental house. I used the asset entry worksheet, completed section on disposal. Data pulled onto form 4797 part III.
However, the software keeps calculating the entire gain as a capital gain on schedule D, and is not pulling out the amount of accumulated depreciation from the asset entry worksheet to be taxed at recapture ordinary income rates... Am i missing something obvious here?
Any help would be most appreciated!
