Sale of long term residence/short term rental - Where to enter, Capital Gains, Depreciation, fair market values, etc?

Forum|Forum|3 years ago
February 8, 2023
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There's more than one place to enter the sale of a home, and I'm confused where to add mine based on my situation. I also don't understand how to calculate/deal with depreciation, and fair market values which TurboTax asks me about in confusing ways.

I bought the house 2/20/2003. It was my primary residence until 7/4/2020 when I moved into a new home. I used it as a second home for when I needed to stay in town from time to time until 3/16/2021 when I rented it. I then sold it and closed on 2/16/2022.

Any advice on where to put what and how to calculate what in TurboTax would be greatly appreciated.

leeloo

If it was rented in 2022, handle everything through the rental section. You will do what you normally do to report rent, but you will continue on to the sale portion. Read each screen carefully tor reporting information about the sale.

There is also a section for the personal home exclusion. The capital gain and depreciation recapture will be calculated for you.

ShirlynW

@ShirlynW

[Edit02/08/2023I11:47 AM PST]

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leeloo

The rule says that you must have used your home as your primary home for 2 out of 5 years prior to the date of sale. It doesn't matter that it was converted to rental at the time of the sale. It is both. The rental time period has to have the depreciation recaptured. The personal home portion may be entitled to the exclusion. All the qualifications must be met.