1902434
I sold a rental home which I owned for three years. Always a rental. I entered this information in sale of business property and it told me what my taxable proceeds are? But, it does not take me to any form to calculate how much I need to pay in capital gain taxes on the proceeds from the sale of this rental home?
Please help!
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You do not do the calculation, the program does. The sale will be reported on Form 4797. To the degree the sales price was more than the adjusted basis (apart from depreciation), it is a capital gain and will be reported on Schedule D. The depreciation is recaptured and taxed as ordinary income.
Thank you. How do I edit the amount reported as my gain? I forgot to deduct a major repair I had to do prior to the sale of the condo. When I go to update under sale of business property, I do not see anyway to access the data I already put into turbo tax for the sold rental home? All it does it try to help me add a new sale of business property, no editing of the already entered property. When I click on the dollar amount shown next to update on the prior screen, a pop up box just shows to show how turbo tax got that number, no option to edit.
I have no idea what is going on now. Turbo tax is reporting two different amounts of gain on the sale of one property? Saying I owe double what I thought? Why is it doing this? How do I delete all of this information and start over? I obviously did something wrong.
May I offer a suggestion? Delete the sale from the Sale of Business Property section and report the sale in the SCH E section of the program. That way, the program does all the math "for you". (Or at least substantially more of the math.) Enter your repair expenses as a rental expense in the rental expenses section, and that will take care of that just fine.
Reporting the Sale of Rental Property
If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.
Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in 2019". Select it. After you select the "I sold or otherwise disposed of this property in 2019" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even it it's zero. Then you MUST work through the "Sale of Assets/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).
Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets. You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset. Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1
Basically, when working through an asset you select the option for "I stopped using this asset in 2019" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.
When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.
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