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Question

Gain from sale of rental property

Forum|Forum|2 years ago
December 28, 2023
1 reply
0 views

I bought a rental property 35 years back for 30K. I sold last year for 250K. How do I report? Can I amortize the gain for three years?

Employee

Was this a residential rental property? Have you been taking depreciation deductions?

Your gain on the sale would be the sales price ($250k) less selling expenses minus your adjusted basis (which would include accumulated depreciation on the structure).

In TurboTax you would report this as the sale of business property or, if you have been using TurboTax, you would indicate the property was sold in the Rentals section of the program.

hsonaiAuthor

Thanks.

Does this mean I need to report 250-30 = 220 K as my income this year? Can I declare this income into four years?

Employee

Take your sales price of $250k and subtract your selling expenses.

From that figure, subtract your adjusted basis and the result is your gain.

Note that your cost basis of $30k needs to be adjusted (downward) as a result of depreciation deductions you took or could have taken.