@ebot wrote:
Wow!
Thanks Opus!
I guess this will be tricky to enter into TurboTax. Maybe there are some fields I could explain my calculations.
In general, you just report the final outcome, but save your records in case of audit.
Treat the sale as two separate properties.
For sale of rental property (the 2 rental units), there is a module in Turbotax for this, I think you report on schedule E (rental), and that will automatically flow to schedule D (capital gains). You will be asked about cost basis, selling price and depreciation, some of which Turbotax may already know, and some of which you may need to add.
For sale of the owners unit that was partly rented and partly used as a personal residence, I believe you will use the program module for "sale of your personal home." I believe this includes an interview that will cover prior rental use, and the non-qualified use period. However, I have not used these sections of the program myself. You can always create a dummy account (different user name and password from your real account) and make a practice return in Turbotax Online to see how it works. Turbotax online is "free to start" and you only pay if you need to actually file the return, which you won't in this case. (Turbotax online is only for the current tax season 2023, so whenever you do sell your home you will have to prepare your official return in that year's version of Turbotax.)
@Critter-3 , @Hal_Al , @rjs any further guidance on how to report in turbotax?
