Yes, but first make sure you have a loss. When you recapture the depreciation, it will usually show a profit.
- With your return open in
TurboTax, search for rentals and then click the "Jump to" link in the
search result.
- Answer Yes to the question Did you
have any rental or royalty income and expenses?
- When you get to Is this a
rental property or royalty? select Rental property and fill out the
description, address, and owner.
- When you hit Do any of
these situations apply? you'll definitely want to check the Sold box along with any other
boxes that may apply.
- Continue following the
onscreen prompts to enter info about your rental property. Eventually
you'll get to the Rental Summary screen. Here, you can report the sale in the Sale of
Property/Depreciation section, along with any other pertinent info (income, expenses,
etc.)
Terminology Tips
- Sales Price – If you received a Form
1099-S, look in Box 2 (Gross Proceeds), which will generally be your contract sales
price. You can also use the gross proceeds amount from your
settlement closing statement.
- Sales
Expenses for
selling your property include sales commissions, advertising, broker and
legal fees, and transfer taxes.
- Basis is your rental's original
purchase price plus settlement costs at time of purchase (abstract, legal,
and recording fees, surveys, transfer taxes, owner's title insurance) .
- Adjusted
basis is your
basis plus improvements and sales expenses minus depreciation..
Enter the sale of your rental
property:
1. In Online TurboTax Premier, click the bars at the
upper left corner to show Federal Taxes on the selection list; enlarge the
screen if needed to show the left side selection list.
2.
Select Business Income & Expenses,
in the next screen, click I'll choose what
I work on.
3.
On the Your Income Summary screen
(Premier edition) or Your Business Income screen (Home & Business
edition), scroll down to the Rentals and
Royalties group.
4.
Click Start/Update next to the Rentals and Royalties line and step through the
rental interviews to the Rental and Royalty Summary screen.
5.
Click Start/Update next to the property you sold.
6.
Click Continue to proceed to the Do Any of
These Situations Apply to This Property?
7.
Check the box next to the I sold or disposed of
this property in 2017 line and click Continue.
Follow
the prompts to enter information about the sale of your rental. As you go
through the interview, these terms and definitions may be helpful:
Sales
Expenses for selling your property include:
- Sales commissions
- Advertising Expenses
- Legal Fees
- Broker Fees
- Transfer taxes
•Cost
Basis is the rental's purchase price plus buying costs (fees you paid in
connection with the purchase such as legal fees, abstract fees, survey charges,
owner's title, etc.) plus improvements, minus depreciation.
•Adjusted
basis is the rental's purchase price plus buying costs plus improvements plus
sales expenses, minus prior-year depreciation.
