Yes, you should report this as a sale of business property. This way the depreciation is recaptured and the remainder of the gain would be treated the same way as a second home sale with capital gain treatment. The answer assumes you did have a main home you used and still live in.
- Open your TurboTax return and follow the steps below (TurboTax Online/Mobile or TurboTax Desktop:(
- Under Income scroll down to Other Business Situations
- Select Sale of Business Property
- Select Sales of business or rental property that you haven't already reported.
- Answer 'Yes' to Do all of the following apply...?
- Enter your sales information, do not make an entry for depreciation (no zeros)
- Description of the Property (Second Home/Previous Rental Home)
- Sales Price/Sales Expenses
- Date acquired and date sold
- Cost
- Depreciation
@Fritzcol
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