I sold real estate in Mexico in 2022 and carried a contract. Paid off in 2023. This was my second home and also a rental for a few years.

Forum|Forum|3 years ago
March 28, 2023
1 reply
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I virtually broke even. How do I report the sale?

TurboTax Online

RobertB4444

As a rental home this should have been being reported on your tax return for all of this time. You should go to the rental real estate section and select the rental home that you sold and put that you disposed of it in an installment sale. Then you will enter the expenses of the sale as well as the total sale price and the portion that you received in 2022. When you come back in 2023 you will enter the amount that you received to close the deal out.

Depreciation recapture on the rent house may mean that you didn't really break even. You'll have to enter all of the numbers to find out.

@digby27

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digby27Author

Thank you. The property has not been a rental for 5 years. I was instructed by Turbo Tax after I stopped renting it, to not include it any longer on the return. It has been my second home since then. Should I add it back in?

RobertB4444

Yes. You should have saved the depreciation schedule from when you removed it and stopped renting it. So you'll go in to the rental real estate section and answer all of the questions about when it was rented and prior accumulated depreciation and the sale price and cost of sale and everything else. And then TurboTax will put it in the return where it belongs and you'll have some gain on the sale because of the depreciation that you took when it was a rental.

@digby27

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