I think you mean to say that TurboTax is showing some tax on the property sale, but it should not since you are below the income threshold for tax on capital gains. One possibility is that there was depreciation recapture associated with the sale, and that is not considered capital gain income, it is taxable as ordinary income. For instance, if the profit on the sale was $50,000, just as an example, but you sold an asset that had $5,000 of accumulated depreciation on it, the capital gain would be $45,000 and $5,000 would be taxable at ordinary tax rates, up to a maximum of 25% in most instances.
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