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March 14, 2024
Question

Property Sale (1 year was room rental out of 3 years)

  • March 14, 2024
  • 1 reply
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I bought a house June 2020. I rented a room for a year. I sold the house June 2023. Made a profit -- Is this capital gain? How to report? Did not receive 1099 S although I did answer that I had the house as partial rental. I did live in the house for those 3 years. I did report the rental as income. Help.

1 reply

KrisD15
March 14, 2024

The TurboTax program can do that calculation although you will need to enter the amount of depreciation you claimed while the room was rented.

If you rented it half of 2020 and half of 2021, you'll need to look at Schedule E  and Form 4562 from your 2021 tax year return. 

The tax year 2021 Form 4562 will list your 2020 depreciation and tax year 2021 Schedule E will show what you claimed in depreciation for 2021. Add them together for the total depreciation claimed. 

 

Enter the sale for 2023. Be sure to enter the dates correctly and number of days you rented out the room. 

Although you also lived there, those days are disqualifying. 

If you owned the house three years and rented a room one year, the exclusion would apply up  to 2/3 the gain (within the 250,000 single/500,000 Married Filing Jointly limit) 

 

You should need to claim all the depreciation and one-third the gain as taxable income.

 

Exclusion to gain 

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