How to report recapture of depreciation on the sale of the main home used partially for business?
I can’t figure out how to get the “real estate depreciation after 5/6/97” onto my test asset. I have a test file with a 1979 home office using 40-year SL depreciation. I went into Screen 22 for the home office being depreciated all these years, put in a nice high sales price (relative to the original purchase price) and a sale date near the bottom of the dep’n screen — codes 16 and 61 — and saw Form 4797 page 1 and 2, and what looks like regular depreciation recapture, and Schedule D with nothing special on it (I was expecting to see some 25%-rate recapture but didn’t notice any). I’m not sure if you question was about the 25%-rate depreciation recapture, or the ordinary-income-rate depreciation recapture if one had used rapid depreciation in the mid-80’s. My client wouldn’t have that but just had the depreciation allowed/allowable decreasing original cost, making total gain higher than client might have thought. By the time my client really does sell, I hope someone will have found
