pk
Level 15
Level 15

Investors & landlords

@natalierose28 , agreeing with the suggestions from my colleague @AmeliesUncle , here is my conclusion and it is actually easier  than my earlier suggestion:

(a)  per @AmeliesUncle 's suggestion do the rental income -- Schedule as usual.  It will include any allowable depreciation based on MACRS for your property  ( it will probably also show you any suspended losses   and accumulated depreciation).  Keep these figures handy. 

(b) go the personal income section , choose " I will choose what I work on  ". Then when all done with W-2 etc. and near the bottom you will see the  "sale of home".   Select this 

(c) Enter all the details as if you sold  your main home  ( of course the address etc. will be the actually sold property.  Note that  Under the  Sales  Price, include all the  "Sales Expenses   (viz.  commission, title search/insurance, transfer tax, any improvements/repairs you did  explicitly to get the place ready for sale  etc. ) as a negative number -- I would use a back-up/explanatory sheet for this -- the total will transfer to the form.   If I  remember right, a few screens later , under  "special..." it asks for if you used the property for anything else  --  want the exact number of days the  property was  used as rental.  Next screen it asks for  depreciation you have taken -- here  provide  the accumulated  depreciation including the current year.

(d) This will result in   Schedule-D computation, including recapture of the  allowable depreciation  ( taxed as ordinary gain/income ) exclusion for sale of main home etc.

This works.

 

 Is there more I can do for you ?

 

Sorry for the long   time  ( I was having a hard time  verifying the  results of the Schedule-D tax computation  ---- it is  done differently  than I would have done  but it does work -- just more convoluted IMHO) it took.

 

pk