Trying to verify whether Turbo Tax can properly handle the reporting of the sale of our rental condo.
We purchased a condo in 2006 and converted it from our primary residence to a rental in 2015. FMV at the time we converted it was far below our initial cost, so we used the FMV as the basis for rental depreciation. The value of the condo since appreciated and we sold it in 2020 for a profit.
Renters moved out mid-October 2020 and we closed on the sale of the property at the end of November. I know that we need to pay taxes on the recapture of the depreciation, and then also capital gains.
In a response to another question on the forum, I read that Turbo Tax wasn’t set up well to report the sale of a condo when FMV at the time it was converted to a rental was lower than original cost, but from other questions, it looks like I should be able to do it if I report it as a sale of business property.
If I can use TT, can anyone please help me with what I need to do to make sure I report this correctly? Thank you so much!
