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New Member
posted Jun 4, 2019 7:23:45 PM

How do I report the carryover basis of three rental residences I inherited from a QTip Trust? I continue to rent these properties.

The basis remains as it was at the time of my mother's death, less further depreciation taken up to my father's death. I continue to rent the properties so no sale or purchase is involved. How do I report this in TurboTax?

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1 Best answer
New Member
Jun 4, 2019 7:23:51 PM

When you register for Answer Exchange, you entered that you are using TurboTax Deluxe.

TurboTax Deluxe does not handle rental properties, so you need to use TurboTax Premier.

Since this is the first year you have listed the properties on your tax return, you simply enter the basis as whatever  carryover basis you believe you have.  There is not a specific question to ask where you got the basis.  

Here is where to locate rental expenses in TurboTax Premier:

  1. In TurboTax, search for rentals and then click the "Jump to" link in the search result.
  2. Answer Yes to the question Did you have any rental or royalty income and expenses?
  3. Follow the on-screen instructions as you proceed through the rental and royalties section.
    • We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.)
    • Eventually, you'll come to the Rental Summary screen which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.

Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2018 collected in December 2017 is reported on your 2017 return.

If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.


3 Replies
New Member
Jun 4, 2019 7:23:47 PM

Is this the first time you are entering them into your own return on TurboTax?

New Member
Jun 4, 2019 7:23:50 PM

Yes.  ownership transferred to me in 2017

New Member
Jun 4, 2019 7:23:51 PM

When you register for Answer Exchange, you entered that you are using TurboTax Deluxe.

TurboTax Deluxe does not handle rental properties, so you need to use TurboTax Premier.

Since this is the first year you have listed the properties on your tax return, you simply enter the basis as whatever  carryover basis you believe you have.  There is not a specific question to ask where you got the basis.  

Here is where to locate rental expenses in TurboTax Premier:

  1. In TurboTax, search for rentals and then click the "Jump to" link in the search result.
  2. Answer Yes to the question Did you have any rental or royalty income and expenses?
  3. Follow the on-screen instructions as you proceed through the rental and royalties section.
    • We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.)
    • Eventually, you'll come to the Rental Summary screen which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.

Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2018 collected in December 2017 is reported on your 2017 return.

If you're also filing a nonresident state return to report income from an out-of-state rental property, be sure to complete your nonresident state return before you prepare your resident state return when you get to the State Taxes section.