Rental Property Sold - Depreciation Recapture Not Populating in Form 4797

poppinthekap
poppinthekap Member Posts: 1 Newcomer
edited April 14 in Filing my taxes

Hi, I'm having trouble figuring out how to properly input my rental property sale situation into FreeTaxUSA software.

I had a rental condo that I rented from early 2021 to late 2024. Once the tenants moved out in late 2024, I no longer rented, I started prepping it for sale. I sold it in late-March 2025. I also depreciated it in the years it was a rental.

My understanding is I need to fill out a Schedule D for capital gains, and Form 4797 for depreciation recapture. But it seems that no matter which way I try to input it into the software, there are issues.

It seems like it would make some sense to report under the "Rental Income" section, since it has questions about if the property was converted to personal use (yes) and if the property was disposed of (yes). However, when I input that there were 0 rental days in 2025, it throws an error flag and says (understandably) that this doesn't qualify as a rental property and tells me I must delete the entry.

So instead I tried to input it under the "Sale of Business Asset" section, which seemed like it was taking depreciation and everything into account, but then the "Income Summary" shows all of the income listed under "Capital Gains" and $0 under "Form 4797 Gains" which should show the depreciation recapture.

Any advice on how to input this in correctly? Or is this out of the capability of the software?

Thank you!