@taxlady28 wrote:
Does TurboTax do a calculation like that? I have just seen where it asks if it was primary residence for two of the last five years. I thought if that was true than it was eligible for the entire $250,000. I do know it asks about the depreciation and does deduct that correctly. Your answer makes sense and I am just wondering how that would happen in TurboTax.
Turbotax doesn't directly do the calculation. Turbotax will ask you, "did you use the home for anything other than your primary home?" It also has a link you can click for an explanation. If you answer "yes" (you used your house for something other than you primary home), you will need to enter the number of day the home was used for something else. You will have to calculate the number of days yourself, from your own records. In your case, it is the number of days after 2008 that the home was used as a rental, or used as a second home (not your main home).
Then, Turbotax will ask if you claimed or could have claimed depreciation, such as using the home for business, a home office, or as a rental. You will have to enter the amount of depreciation that you claimed or could have claimed (even if you didn't actually claim depreciation) from your own tax records, turbotax won't help you come up with the dollar amount.
The rest of the entry proceeds normally.
