How to report the sale and the depreciation recapture using this scenario?
Client owns a personal residence for past 6 years with 3 floors of which 2 floors have been rented and 1 floor used as personal residence. Depreciation was claimed for the 2 floors on Schedule E. Now the total property has been sold. Selling price $400,000, cost basis plus selling expense is $250,000 with accumulated depreciation $65,000 (total for property).
Client owns a personal residence for past 6 years with 3 floors of which 2 floors have been rented and 1 floor used as personal residence. Depreciation was claimed for the 2 floors on Schedule E. Now the total property has been sold. Selling price $400,000, cost basis plus selling expense is $250,000 with accumulated depreciation $65,000 (total for property).
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