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My husband purchased a house in 2003 for $150,000.

In 2010, the house became a rental, but the fair market value of the property (less the land) was about $110,000 and we were depreciating $3,958 per year.

In 2013, the house was sold for $142,000. We also paid closing costs of $4,000 and real estate commissions of $8,520.

I am trying to run an estimate of our taxes in TaxAct, but the software is showing a gain on the property of $32,000, plus reclaimed depreciation. Is that right? Or user error on my end?

Can you point me to the publication that would deal with this transaction?

Thanks so much for your assistance.
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