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It depends on the rental activity during the year. Also the fact that you used the sales proceeds to pay off your mortgage on the property does not affect the amount of capital gain or loss on the sale of the underlying (rental property) asset.
Therefore your sales proceeds will be your gross sales amount less selling expenses.
Where to report your rental sale -
Additionally, when you sell a property that was used as a rental, you must pay 25 percent recapture tax (also referred to as Section 1250 recapture) as well as regular state income tax on the depreciation you claimed. (Remember the IRS will assume that you claimed the correct amount of depreciation every year—this is true regardless of whether you actually claimed any depreciation on your tax return).
Click this link for further information about reporting the sale of a capital asset
To enter your rental sale under the rental section in TurboTax Online or Desktop, please follow these steps:
To enter this rental sale under the sale of a business property in TurboTax Online or Desktop, please follow these steps:
It depends on the rental activity during the year. Also the fact that you used the sales proceeds to pay off your mortgage on the property does not affect the amount of capital gain or loss on the sale of the underlying (rental property) asset.
Therefore your sales proceeds will be your gross sales amount less selling expenses.
Where to report your rental sale -
Additionally, when you sell a property that was used as a rental, you must pay 25 percent recapture tax (also referred to as Section 1250 recapture) as well as regular state income tax on the depreciation you claimed. (Remember the IRS will assume that you claimed the correct amount of depreciation every year—this is true regardless of whether you actually claimed any depreciation on your tax return).
Click this link for further information about reporting the sale of a capital asset
To enter your rental sale under the rental section in TurboTax Online or Desktop, please follow these steps:
To enter this rental sale under the sale of a business property in TurboTax Online or Desktop, please follow these steps:
If the property was rented in 2019 and sold in 2019 I realize it has to be reported. Must this be done in BOTH
Also, the house was sold for a capital gain but a large amount of the sale price paid off a mortgage which was outstanding on the property. So the amount realized was far smaller. What entry takes this into account and where does that go in? Capital gain may not be affected but income from sale is massively lower than the market sale value.
Thanks
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