Sale of Schedule E Property form 4797

[mircpa]

I have a question regarding sale of Sch E property. Form 8582 is not recapturing all previously unallowed losses.

Book value of property bought in 2006 $ 208,000, accumulated dep of 31,798.00, sold on 04/26/13 for 189,000.00. Prior and current year unallowed losses are 33,524.00. Line 22 of Sch E is showing -12,798.00. Line 6 of 4797 is 19,101.00 and line 7 $ 12,798.00. Software is using all accumulated depreciation in calculating gain but form 8582 shows unallowed losses of $ 20,726. Can someone help me why is that. Is there a limitation based on AGI. Client's current AGI is >250K

[grandmabee]

there's a box to check that property was disposed completely .