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Sale of second home, converted from a rental

Forum|Forum|4 years ago
February 20, 2022
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We sold a second home in 2021 that was used as a rental from 2003 - 2016, and need to recapture the depreciation for that time period and pay tax on the capital gain. I received a 1099-S to report the sale, but don't know where to enter this in Turbo tax so that the depreciation is recaptured also. Under the Investment Income section, I'm only given the option to report the sale. Do I have to report this sale under Rental Property as "Income from Rentals or Royalty Property You Own" in order to recapture the depreciation, or is there another place in Turbo Tax where this sale needs to be entered to accomplish this?

Best answer by PatriciaV

You may enter Form 1099-S for a previous Rental Property as the Sale of Business Property under Other Business Situations of Federal Income.

Indicate that you have a sale of business or rental property that you haven't already reported.

Follow the interview to enter the details of the sale and the total depreciation you took on the property while it was rented. Before you leave that section, be sure you enter the Total Gross Proceeds reported on Form 1099-S. TurboTax will calculate the capital gain/loss and depreciation recapture to report on your tax return.

PatriciaVAnswer

Employee

You may enter Form 1099-S for a previous Rental Property as the Sale of Business Property under Other Business Situations of Federal Income.

Indicate that you have a sale of business or rental property that you haven't already reported.

Follow the interview to enter the details of the sale and the total depreciation you took on the property while it was rented. Before you leave that section, be sure you enter the Total Gross Proceeds reported on Form 1099-S. TurboTax will calculate the capital gain/loss and depreciation recapture to report on your tax return.

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