2025 Tax Planner does not calculate Unrecaptured Depreciation Gains correctly, Section 1250
Quicken allows you to calculate taxes on sale of rental real estate, Section 1250, but does not calculate it correctly. The capital gains part of a rental sale is calculated correctly: We entered that in Tax Planner under Capital Gains, Long-term Gains, as an adjustment. That is taxed correctly. We entered our Unrecaptured Depreciation under Capital Gains: Unrecaptured Dep. Gains field. Quicken calculated the Unrecaptured Dep. Gains as long term capital gain instead of ordinary income tax. So if using Quicken to calculate quarterly taxes just be aware that you have to add the difference by hand. This was only our 2d time to sell a rental property. So should not be a frequent issue. Did not notice it before probably since we sold that property in 4th quarter. For almost every year Quicken Tax planner is so close to our spreadsheet calculations or H&R Block tax software, that we just assumed that Quicken was always right for taxes. For this year it was off: for $19,105 of rental sale depreciation, Quicken tax planner calculated at 0% capital gains, since AGI was low, but should have been calculated at 12% ordinary income tax or $2,293. So good we found discrepancy or would have had underpayment penalty. I did not see entry for this so wanted to post it for the next person.
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