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kmz
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Condo was rental 4 yrs, then primary 4 yrs, then rental 6 month. sold 11/2018. Property sold at same price as purchase. How to report in 2018 TT

 
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Carl
Level 15

Condo was rental 4 yrs, then primary 4 yrs, then rental 6 month. sold 11/2018. Property sold at same price as purchase. How to report in 2018 TT

Since the property was classified as a rental at the time of sale, you'll report the sale in the Rental & Royalty Income (SCH E) section of the program.

"Property sold at same price as purchase."

Doesn't matter, as you'll still have a taxable gain of 4 1/2 years worth of depreciation which is recaptured and taxed in the year of sale. So in reality you sold at a gain.

 

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