Deductions & credits

In TurboTax, you are allowed to make an entry to either increase or decrease your total income to adjust it to your correct community property income. The income or loss on the sale of the property would be added to your other community property income adjustment and then be entered as one amount in TurboTax as follows:

When you do this, the adjustment will end up being taxed at ordinary income tax rates, which may differ from the capital gains rates that may apply to the property sale. To account for this, you can enter just your share of the property sale transactions when you make the original entries in TurboTax, in which case you would not enter the community property adjustment for that part of your income in TurboTax.