The sales proceeds are entered in the Asset/Depreciation section of TurboTax. See the screenshots below.
- With your return open in TurboTax, search for rentals and then click the "Jump to" link in the search result.
- Answer Yes to the question Did you have any rental or royalty income and expenses?
- When you get to Is this a rental property or royalty? select Rental property and fill out the description, address, and owner.
- When you hit Do any of these situations apply? you'll definitely want to check the Sold box along with any other boxes that may apply.
- Continue following the onscreen prompts to enter info about your rental property. Eventually you'll get to the Rental Summary screen. Here, you can report the sale in the Sale of Property/Depreciation section, along with any other pertinent info (income, expenses, etc.)
Tip: Take your time and pay close attention; there's a lot of info and it's easy to miss if you're in a hurry.
Terminology Tips
-
Sales Price – If you received a Form 1099-S, look in Box 2 (Gross Proceeds), which will generally be your contract sales price. You can also use the gross proceeds amount from your settlement closing statement.
-
Sales Expenses for selling your property include sales commissions, advertising, broker and legal fees, and transfer taxes.
-
Basis is your rental's original purchase price plus settlement costs at time of purchase (abstract, legal, and recording fees, surveys, transfer taxes, owner's title insurance) .
-
Adjusted basis is your basis plus improvements and sales expenses minus depreciation.
