To estimate the tax you will owe to North Carolina you need to determine (or estimate) the gain on the sale of the rental property. To do this, you need your adjusted cost basis. You can get your adjusted cost basis from your depreciation reports. Assuming that you have been using TurboTax in prior years, you can get the adjusted cost basis from your 2023 tax return. You can also go ahead and start your 2024 returns and print the depreciation reports. If you are using TurboTax Online, you can print or view your return without filing. See the instructions below.
Your adjusted cost basis will be what you paid for the property, plus any capitalized improvements you made, less any depreciation you took, or were eligible to take. If you have not been depreciating the property I recommend you consult with a local tax professional. If you have been depreciating your property, when you set it up did you allocate the purchase price between the improvements (the house) and the land? Land is not depreciated.
If you made no improvements that were capitalized and you have depreciated the full cost of your property for 15 years, you would have about $60,000 of accumulated depreciation. That would give you an adjusted cost basis of $58,000. That would give you a gain of $192,000 ($250,000 - $58,000). North Carolina's tax rate is 4.25%, so that would result in $8,640 of tax due to North Carolina.
Print or View Without Filing:
If you are using TurboTax Online, you can complete your tax returns without filing. If you want to review your return you will need to pay for TurboTax and then you will be able to print your entire return or specific forms/schedules prior to filing. You will still be able to make changes prior to filing. Follow these steps to print a preliminary copy of our return in TuboTax Online:
- While logged in and working on your return, click on Tax Tools
- From the drop down menu click on Print Center
- Click on Print, save or preview this year's return
- On the next screen click on "Pay Now"
- You may be prompted to "Go to My Info" if you need to add additional information
- Submit your payment information and you will be able to print your tax returns
Note, you must pay by credit card in order print or preview your preliminary return. You will not be able to pay using your federal tax return.
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