Does Turbo Tax step you through calculating taxes due to capital gains on the sell of a rental property?

TurboTax is quite helpful when it comes to handling capital gains from selling a rental property. It guides you through the entire process, making it easier to help ensure everything is accounted for correctly.

Follow these steps to report the sale of your rental property and calculate applicable capital gains on your tax return:

1. Open or continue your return - be sure to sign in for link in step 2 to work:
2. Browse to the rentals section:
   • TurboTax Online/Mobile: Go to rentals.
   • TurboTax Desktop: Select Search Topics. Search for and select rentals.
3. Answer Yes to the question Did you have any income from rentals or royalties?
4. Follow the on-screen instructions. We'll ask you to report the sale when you get to the Expenses/Assets (Depreciation) section, along with any other pertinent info (like income and expenses).

Terminology tips

• Sales Price – If you received a Form 1099-S, look in Box 2 (Gross Proceeds), which will generally be your contract sales price. You can also use the gross proceeds amount from your settlement closing statement.
• Sales Expenses for selling your property include sales commissions, advertising, broker and legal fees, and transfer taxes.
• Basis is your rental's original purchase price plus settlement costs at time of purchase (abstract, legal and recording fees, surveys, transfer taxes, and owner's title insurance).
• Adjusted basis is your basis plus improvements and sales expenses minus depreciation.