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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