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February 20, 2025
Question

How do I report sale of rental real estate

  • February 20, 2025
  • 1 reply
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    1 reply

    KrisD15
    February 20, 2025

    Enter all the 2024 income and expenses for that rental first

    Go to the "Property Profile" section, and select "I sold this rental in 2024" on the "Do Any Of These Situations Apply To This Property?" screen.

     

    Continue through that interview but do not leave the Rental Section

    Scroll down to Sale of Property/ Depreciation

    Yes, I want to go to my asset summary 

    Select EDIT for the property

    Continue through this interview and be sure to select on the "Tell Us More About This Rental Asset" screen ALL- 

    • I purchased this asset (if appropriate)
    • The item was sold
    • Yes or No to 100% use

    Continue through the interview and report the sale

     

    Sale proceeds over cost will be capital gain (capital gain tax rate)

    DEPRECIATION RECAPTURE will be Ordinary Income (your tax rate)

     

    IRS Pub 527

     

     

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