Should something appear under Sale of Home (gain or loss) for sale of a rental?

Forum|Forum|4 years ago
April 14, 2022
1 reply
0 views

Hello,
I am finishing up my tax return and one thing that looks strange is that after going through all the questions, and I believe answering them correctly, I am showing something under "Sale of Home (gain or loss)". I thought this section was just for the sale of a primary residence but it was automatically populated after completing the questions about the sale of my rental property. I did not sell a primary residence and only sold my rental property but the address appears in both places. I am wondering if it should be listed there and if it is effecting anything. I am worried about deleting it because I don't want all the work I did for my rental property to be deleted. Does anyone know if something should be showing there for the sale of a rental property? It looks like the below.

Rental Properties and Royalties (Sch E) Condo that I rent out	-$13,126.00	Edit/Add

Sale of Business Property	$62,547.00	Edit



Sale of Home (gain or loss)	$62,547.00	Edit

TurboTax Premier Online

ColeenD3

In the sale of rental property screens, you will encounter one asking about the property also being your primary home. If during the 5 years prior to the sale, you met the qualifications, you can exclude all or some of those gains. You are still selling a rental property, you are just using the exclusion for the personal part if you qualify. This will not include the depreciation you took when it was a rental.

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you're Married Filing Jointly, you won't pay taxes on the first $500,000.

That income is excluded as long as:

You owned the home
It was your main home for two years or more within the five years leading up to the sale
You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

shanavtAuthor

Thanks Colleen. The rental property I sold had not been a primary residence for me 8 years. So should it still appear in this section?

ColeenD3

No, you do not qualify for Sale of Home. It is a strictly rental property. When you encounter the screen, reply in such a way that you will not have the Sale of Home on your return.