Yes. The land is not subject to the rule for Section 1250 property while the building itself, is. TurboTax knows the difference when entered correctly.
- Section 1250 gain is subject to a maximum 25% capital gain tax rate for depreciable real property held more than one year (rental building/home).
- Land is subject to capital gain tax rates at a maximum of 20% because it is not depreciable property.
These rates come into play if your overall income is in a tax bracket higher than the rates mentioned.
@AB-Tax
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