Hello,
Client has a depreciation recapture on which a tax of 25% is due for the sale of rental property. However, Schedule D Tax Worksheet in ProSeries is calculating a 'zero" tax on line 40. What do I need to do in ProSeries to have it calculate the 25% tax on depreciation recapture/.
Thank you very much.
Bessy
It is not automatically taxed at 25%, so zero might be correct on line 40.
It is taxed at ordinary rates, UP TO 25%. I think lines 35-39 on that worksheet determine if the 'up to' part has been filled up (based on the rest of the worksheet).
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