how do I enter the sale of rental property in turbo tax?

Forum|Forum|2 years ago
March 22, 2024
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DoninGA

Employee

See this TurboTax support FAQ for reporting the rental property sale - https://ttlc.intuit.com/turbotax-support/en-us/help-article/real-property/sold-rental-property-report/L4No7YsIW_US_en_US?uid=lu336jmf

DawnC

Employee

There are two places to enter the sales, under the basic info for the Property Profile and under Assets/Depreciation from within the applicable rental (in that order). Be sure to continue through the entire section. The full instructions are linked here - How do I report the sale of my rental property?

You'll need to mark the rental property as sold in two places. If you've been using TurboTax, you'll have your rental information carryover. If not, you'll need to add it. The software asks all the relevant questions.

Mark the Rental Sold Under the Property Profile:

Head into Rental and Royalty Income and answer the basic rental questions >>>
select to Edit the applicable property (or you'll just start adding the rental) >>>
Select Update next to Property Profile >>>
On the screen titled Do any of these situations apply to this property? be sure to indicate I sold or disposed of this property in 2023 by selecting the checkbox.
Be sure to answer the questions that follow to continue through the

Select the House Sold Under Assets/Depreciation and Enter Sale Information:

When you are back at the Rental Property Summary Screen select Edit/Update/Start next to the Assets/Depreciation section.
You'll need to answer through the election questions the first time you update this section, this year (but you can skip them after that).
On the summary screen of assets listed under this rental property, click edit next to the house asset (or add it)
On the first screen you'll be able to check the box to indicate that you sold or disposed of this asset this year.
Be sure to answer through this entire section to report all information.

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cc222

If I identify that I sold a rental single family home in the depreciation section; I cannot get the correct cost basis as it does not include land value from original purchase price. How do you add that correctly to ensure your capital gain is correct.

DawnC

Employee

Add 2 separate assets - one for the land and one for the home. You must allocate a proportion of the sales price and selling costs to the land based on fair value. You will report the sale of two assets. Land doesn't get depreciated so it gets entered separately. @cc222

Sale of Rental

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