Question

Sell of Rental Property

Forum|Forum|5 years ago
March 29, 2021
1 reply
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We bought a house in 8/2014 for $292000 as our primary house. We lived in the house until 9/2019 as we bought another house. We then used the house as a rental property for less than a year, and sold it in 7/2020 for $400000. Now, it seems like the Turbo tax is calculating about $93000 that we made on this house as taxable gain on a business (in section: "Sale of Business Property") although we only rented it for 10 months.

I was told that if we live in a house for more than 2 years, we can exclude the gains from taxes. Where are we doing this wrong?

TurboTax Premier Online

ColeenD3

Where did you report the sale? If you had income in 2020, you should have entered all the details of the sale in that section. As you go through the interview portion, you would encounter a screen asking if you used it as a main home. When you answer yes, you can enter the details for the exclusion.

A

avahrAuthor

I reported it under "Sale of Business Property" and under Rental Properties and Royalties (Sch E).

Under sale of business property it asks for gross proceeds that I don't know what it is.

Under rental I check a box for sold property, and it then asks some questions. I answer to the questions that I only had it rented for a year but it still shows all the gain as income. Not sure where I am doing it wrong