V
vetat
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What is the name of your state? PA
I'm so confused. I'm trying to complete Form 4797 and I can't seem to make sense out of a few things. Here's my situation: I sold a commercial building for $50,000. I purchased it for $105,000, 20 years ago. Over the years my depreciation deductions totaled $90,000.
When I complete Part I line 2 I get a gain of $35,000. However, when I complete Part III I end up with a total of $35,000 on line 32, which says to enter it on line 6 in Part I. That makes a total gain of $70,000 (when I add lines 2 through 6 on Part I) which then states to enter this amount on Schedule D. This seems incorrect. How can I be showing a gain of $70,000 on a building I sold for 1/2 of what I paid for it? Even when I add the depreciation back on it it should only add up to $35,000 ($50,000 sales price plus $90,000 depreciation minus my cost of $105,000). What am I doing wrong?
Please help.
Thanks
I'm so confused. I'm trying to complete Form 4797 and I can't seem to make sense out of a few things. Here's my situation: I sold a commercial building for $50,000. I purchased it for $105,000, 20 years ago. Over the years my depreciation deductions totaled $90,000.
When I complete Part I line 2 I get a gain of $35,000. However, when I complete Part III I end up with a total of $35,000 on line 32, which says to enter it on line 6 in Part I. That makes a total gain of $70,000 (when I add lines 2 through 6 on Part I) which then states to enter this amount on Schedule D. This seems incorrect. How can I be showing a gain of $70,000 on a building I sold for 1/2 of what I paid for it? Even when I add the depreciation back on it it should only add up to $35,000 ($50,000 sales price plus $90,000 depreciation minus my cost of $105,000). What am I doing wrong?
Please help.
Thanks
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