Sale of Main Home Converted to Rental

JJ242 · ‎April 7, 2020

I sold the house on 6/10/2019. Originally bought in 2000, lived there through 8/31/2017. It was rented out from 9/1/2017 through 3/31/2019. It was sitting vacant from 4/1/2019 through the sale date of 6/10/2019.

I entered the sale in the Rental part and it shows up in both Business and Personal parts of TT.

When I answered "Yes" to question " Did you use this home for anything other than your private home? with 577 days of Non-qualified use, TT populates form 4797 with a gain. Is "Yes" the correct answer considering the situation?

Should there be tax for both capital gain on the non-qualified use and depreciation recapture?

Should I use 3/31/2019 as a sold/dispose date or 6/10/2019 in Rental part of TT?

ReginaM · ‎April 7, 2020

Use 6/10/2019 as your sold/disposed of date in TurboTax. I am not sure how you entered the Sale of your Rental Property in TurboTax, but to enter the sale of your rental properties in TurboTax, follow these steps this will correctly consider your depreciation on your tax return:

While in your Tax Home,
Select Search in the top right corner of your screen,
Enter Sale of Rental Property,
Select Jump to Sale of Rental Property.
Follow through these on-screen prompts to complete this section.

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AmeliesUncle · ‎April 7, 2020

@JJ242 wrote:
with 577 days of Non-qualified use,

I just want to make sure you are doing this correctly ... the rental period after you moved out for the last time is NOT Non-qualified use. So if it was your main home from when you bought it until 9/1/17 (when you started to rent it out) and you did NOT move back into it, you have ZERO days of Non-qualified Use.

JJ242 · ‎April 7, 2020

Yes, it was my main home from year 2000 to 9/1/2017. Rented from 9/1/2017 to 3/31/2019 and didn't move back in after the rental period.

So I will change my answer to "NO" for the question about "Non-qualified use". This question was kind of confusing and wanted to be sure.

Thanks!

Sale of Main Home Converted to Rental

Investors & landlords

Investors & landlords

Investors & landlords