Skip to main content
April 18, 2022
Question

Do I need to report the sale of rental property, if I did not rent it in 2021? It was last rented in October 2020 so Turbotax says not to enter anything.

  • April 18, 2022
  • 1 reply
  • 0 views
I did not receive a 1099-S and the property was initially purchased as a personal home and then converted to a rental property

1 reply

April 18, 2022

Yes, you do need to report the sale of your rental property. The depreciation recapture needs to be entered in your tax return.

 

In TurboTax Online, to report the sale of the rental property, follow these steps:  

  • Down the left side of the screen, click on Federal.
  • At the top of the screen click on Wages & Income.
  • Under Your income, scroll down to Rentals, royalties, and Farm.  Click  Show more to the right.
  • Click Edit / Add to the right of Rental Properties and Royalties.
  • At the screen, Your 2020 rentals and royalties summary, click on Edit to the right of the rental activity.
  • At the screen Here's rental property info, scroll down to Assets (Depreciation) and click Edit to the right of the rental property.
  • Click Yes, I want to go to my asset summary.
  • Click Edit next to the asset that was sold.
  • At the screen Tell us more about this rental asset, click The item was sold, retired, stolen, destroyed, disposed of, converted to personal use, traded in, or given away.
  • Enter the date sold.  Click Continue.
  • Follow the interview questions to report the sale.

You may want to file an extension so that you will have time to accurately report the sale of your rental property.

 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"