I use Proseries Basic. I have a client who sold his home. He lived in the home from 10/1/1983 to 12/31/2018. He rented the home from 1/15/2019 to 12/31/2020. He sold the home on 4/13/2021 for 200,000. He purchased it for 75,000. He told me no capital improvements. He meets the 250,000 exclusion. He received a 1099-S. I entered the sale of the home in the Home sale worksheet. The amount realized is 192,583. I entered the basis of 75,000. No depreciation was taken for the 2 years of rental. I know I need to recapture the depreciation. I figured out the previous depreciation. I entered the asset in the asset worksheet, I entered the previous depreciation and linked it to the rental. The total depreciation included the 3.5 months of 2021. I entered the date of disposition in the asset worksheet and the sales price, etc. When I went back to the Home Sale worksheet, I saw that the adjusted basis was significantly increased. The basis should be reduced by the depreciation not increased if I am correct. The increase was more than the depreciation. The depreciation was about 11,000 and the adjusted basis about 140,000 where it was 75,000 previously. I scrolled down and it seemed like it was coming from the AMT section of the Home Sale worksheet. I am clearly doing something wrong. Can someone please step me through the recapture entry process when no previous depreciation was taken? I am not sure if he will get a full exclusion or have some gain. Let me know if you need any further information. Thank you.
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Can anyone offer their knowledge about my question? I have a feeling I am not entering the information in the correct place in ProSeries. Thanks.
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