PatriciaV
Expert Alumni

Self employed

The rental use percentage is calculated from the rental days versus total days that you owned the property. The balance would have been the sale of your home, except the five-year test period has passed. This is why you report the personal use property as a second home.

 

You'll need to manually allocate the sale information between the two sales. In other words, divide up what is reported on Form 1099-S based on the two percentages. In most cases, TurboTax doesn't do this for you.

 

You should not report that the personal use portion of the sale included the sale of "your home," even though it had been in the past. That may be what is causing TurboTax to say the sale doesn't belong under Investments.

 

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