It depends, if your daughter had no rental income from the home in 2021, then she does not have to file a Schedule E for the income and expenses, but she should report that she no longer owns the rental property. Because the rental property is considered an investment property, she needs to report that she disposed of the property. Even though no money may have exchanged hands, it is treated as a sale. If she gave the property to you by way of Quit Claim Deed, she needs to report the transfer. To report the transfer/sale:
- With TurboTax open enter sale of rental property in the search box.
- Select Jump to sale of rental property in the results window just below the search box.
- Follow the prompts to enter your rental sale information.
I Sold my Rental Property, How do I report it
Real Estate Tax and Rental Property
To make sure you report the transfer correctly, you really should seek professional tax guidance and legal counsel with respect to this transaction.
