Get your taxes done using TurboTax
No, you would report it under Sale of Business Property in TurboTax. Follow the instructions provided by our awesome Tax Expert @ErnieS0. You must find the depreciation used on the rental property from the time it was rented until you removed it from service (1/1/2020). The depreciation must be recaptured whether or not it was available for rent in 2019 - through the sale date in 2021.
- Click on Federal in the left column
- Wages & Income at the top
- Scroll down to Other Business Situations
- Select Sale of Business Property
Be prepared with the sales price, sales expenses, cost (add the improvements cost), depreciation used through 2018 (& 2019 if you used that on your tax return in 2019) and the date acquired and sold.
