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Sale of main home with depreciation recap

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    Sale of main home with depreciation recap

    Taxpayer sales home for $238,500 MFJ return, lived in home for 20 yrs.
    Building for business built 1993 for $19000, on property.
    Primary residence and building sold 09/29/2014.
    Depreciation to date of sale of business/ag building $12700, allocated $20000 of sales price to building.
    Gain on Form 4797 $13,700.

    On the Sale of Main home worksheet it asks for depreciation taken since 06/05/97 which is the recapture depreciation, which is $10,500.

    Thus the 4797 gain is $13700 and depreciation recapture is $10500 on Schedule D. Total cap gain is $24200.

    Is this correct? It seems like he is being hit twice for the depreciation amount.

    Thanks for any help or assistance.
    Last edited by Terry; 03-20-2015, 08:42 AM. Reason: Trying to clarify facts.

    #2
    the way you presented the sale, sounds like the sale of two buildings, one a personal residence and the other sale of a business building. need some clearing up and dates. was residence used as a rental at some point for it to have depreciation?

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      #3
      Recapture

      I think I have it figured out.
      On the Sale of Main home worksheet where it asks for Depreciation taken since 06/05/97, that would be the depreciation taken on the main home, if applicable, that would be recaptured, correct?
      Thus in my case, if I allocated $20,000 of the total sales price to the ag/business buildings sold 09/29/2014 on the depreciation schedule, the 4797 shows gain on buildings and is carried over to the Form 4797.
      And the depreciation recapture on the Sale of Main home worksheet would be $-0-.
      Do I have this correct now?

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        #4
        Figured it out

        Never mind. I figured it out.
        I knew I was over thinking it.
        Thanks,
        Terry

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