How to report a 2nd home sale which was rental for a few years?

Forum|Forum|2 years ago
March 25, 2024
2 replies
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Hi All,

In TT 2023 premier, how do I report a sale of a home? It is not my primary residence or a rental when I sold BUT it was rented for few years before in 2012 to 2016 and I had taken depreciation. The depreciation info is not in TT because then I was not using TT back then.

How do report such a sale? there is a gain for which I need to pay tax and so should I report the sale of this in "investment income" or "sale of business property" (even though it is not a rental now)?

If I report in "investment income" TT doesn't ask for any recapture details. If I enter in business property sale, it does provide options to recapture but it was not a rental when I sold in 2023. Is that ok?

I need to somehow get the form 4797generated so that I can recapture the depreciation that I had claimed earlier so that it can be taxed now.

I am lost. any help appreciated.

Best answer by DianeW777

Yes, you must report it as a business sale since it is not your primary residence and you have used it as a rental in the past. This will take care of the gain appropriately on your tax return.

Wages & Income at the top
Scroll down to Other Business Situations
Select Sale of Business Property
Select Sales of business or rental property that you haven't already reported.
Answer 'Yes' to Do all of the following apply...?
Enter your sales information, do not make an entry for depreciation (no zeros)
1. Description of the Property (Second Home/Previous Rental Home)
2. Sales Price/Sales Expenses
3. Date acquired and date sold
4. Sales Price
5. Cost
6. Depreciation
@tax_user_sb

Mike9241

see this link

https://ttlc.intuit.com/turbotax-support/en-us/help-article/real-property/enter-sale-second-home-inherited-home-land-2021/L7tUghudI_US_en_US?uid=lu7tw8qn

tax_user_sbAuthor

This doesn't offer to do depreciation recapture so I don't think this is the right process.

DianeW777Answer

Yes, you must report it as a business sale since it is not your primary residence and you have used it as a rental in the past. This will take care of the gain appropriately on your tax return.

Wages & Income at the top
Scroll down to Other Business Situations
Select Sale of Business Property
Select Sales of business or rental property that you haven't already reported.
Answer 'Yes' to Do all of the following apply...?
Enter your sales information, do not make an entry for depreciation (no zeros)
1. Description of the Property (Second Home/Previous Rental Home)
2. Sales Price/Sales Expenses
3. Date acquired and date sold
4. Sales Price
5. Cost
6. Depreciation
@tax_user_sb