The sale is reported on the tax return and there will be taxable gain.
There is more to the detail since this was a home and a rental property, even if you used the property as your home for 24 months of the five years immediately before the sale date. For this reason you are not entitled to the full exclusion of gain because there is depreciation recapture required in your situation.
The Commissions, improvements/repairs made due to the home inspection are sales expenses. The real estate taxes and utilities will be allowed for the amounts paid during the rental period in 2021 (no part of these expenses are a sales expense). If you itemize your deductions you can use any real estate taxes paid after the rental period. If you do not itemize deductions then you will not use the remainder of the real estate taxes. The balance of utilities is not a deduction after the rental period.
Any depreciation allowed or allowable (during the months it was rented whether or not you took advantage of the deduction) during the rental period will be recaptured and will be taxable limited to the actual amount of gain on the sale.
Carefully answer the questions in the asset section of the rental activity.
- Answer - No, I have not always used this item 100% of the time for this business.
- Answer - No, Special Handling Required?
- Begin to answer the questions about the Home Sale
- TurboTax will do the rest once this has been completed
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