Sale of primary home in 2017 (2013/14 rental income, depreciation, passive loss not in TurboTax)

[kalster]

I bought a primary residence in 2010, lived in it until 2013.  I rented it for one year in 2013-2014 and then moved back into the home as my primary residence until I sold it in 2017.

I did not use TurboTax in 2013 and 2014 (an accountant did my taxes) and hence the rental info (depreciation and passive losses) are not in TurboTax, but I have the totals from my 2013/14 returns.

Turbotax will not let me add the property as a rental since it was rented 0 days in 2017 (it was my primary residence when I sold it). So I can't figure out how to enter my prior year passive losses. 

I was able to add the depreciation in the home sale section.

Any advice?  Thanks.

[Carl]

Turbotax will not let me add the property as a rental since it was rented 0 days in 2017

Of course not, since based on the information provided it "in fact" was not even classified as a rental in 2017.

So I can't figure out how to enter my prior year passive losses. 

On the screen titled "Tell us about the purchase of your home" you're asked for the adjusted cost basis. If it's clickable, or if there's a "learn more" link, click it and read away. Basically, you add y our carry over losses to the cost basis, to get that adjusted cost basis. Just *MAKE SURE* you do not include any unrealized depreciation in your figures. The program will ask you for prior depreciation taken on a later screen.

[kalster]

Thanks for your comments. 

The home cost basis was adjusted for the depreciation taken and TT computed the taxes I need to pay for the  recapture.

However, for the suspended passive losses, my understanding is that this loss should be realized in schedule E and not by adjusting cost basis of the home.  I was able to the TT to generate a schedule E with the passive loss taken (via both interview and manually form).  

[Carl]

Your understanding would be correct, if what you sold was rental property. But it was not classified anywhere close to Residential Rental Real Estate in the tax year you sold it.