I'm trying to do my taxes with Turbotax Premier. I sold a rental property last year that hadn't always been a rental property. My wife bought and then lived in the property until we got married. We then converted it to a rental property which it stayed as a rental until we sold it last year.
In turbotax, when trying to show the sale of the rental there's a section that asks, 'Special Handling Required?'. One of the listed items to determine if special handling is required is, 'The business use percentage of this asset varied during the years you owned the asset'.
I'm a bit confused by this. Since it wasn't always a rental then does that means the business use wasn't always 100%? Or does it mean that after it was converted to a rental and in service was it a 100% rental?
And if the former, when clicking on the 'Learn More' link, turbotax states, 'If the business use percentage varied over the life of the asset, the program cannot automatically compute the sale information.'
What do I do then?
