I have a question regarding capital gains for a multi-family property that was lived in as a primary residence for 2 of the last five years before selling. The property is a 2 family and my son and his family lived in the first floor apartment which is 70% of the square footage of the house. He has owned the property since 2010 and has consistently rented out at least 30% of the property each year (some years renting out as much as 75% - when he first owned he was single and had roommates that he rented to). My son purchased a home in 2018 and sold the rental property in October 2020 so from March 2018 until the time it was sold the property was rented 100%.
How do I enter the sale in Turbo Tax? Am I entering the sale in the business section or the personal section. I have gone through the assets and entered that each was sold and when they were sold. I'm assuming Turbo Tax will then record the recaptured depreciation from this information.
Currently, I entered the sale of the home in the personal section and there is no capital gains, but I believe capital gains is owed on the portion that was rental only.
