Rental loss at sale how to file?

Forum|Forum|6 years ago
January 6, 2020
2 replies
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in 2018, converted rental property to personal property (April 2018) ... prorated in 2018 returns what was rental (ie. deprecation portion for first 3 months) and what was personal (last 9 months of year). I sold the property in February 2019 at a loss of what i originally paid for the home. Where do i file that sale/loss/previous depreciation amounts? TT says that since i didn't receive 'income in 2019' on the home, it won't let me file it where i used to file rental.

S

soultax09

worst of both worlds....you have to reclaim depreciation deductions when it was a rental but you can't claim a loss because it's personal use property....only thing you can do is report as the sale of a home with accumulated depreciation.

Carl11_2

Employee

You have the worst of both worlds here.

- You can't deduct your loss on the sale, since it was personal use property at the time of the sale. Losses on the sale of personal property are never deductible.

- Weather you receive a 1099-S or not, you still have to report this sale, because you are required by law to recapture all prior year's depreciation and pay taxes on it.

You will report this sale under the Personal Income tab in the "Sale of home (gain or loss) section. Remember, you "MUST" select the option to indicate you have depreciation to recapture. But depending on your sale price, the recaptured depreciation may not be taxable if your loss on the sale exceeds the recaptured depreciation.