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New Member
posted Jun 4, 2019 7:34:03 PM

How Do I report the sale of rental property

0 41 35649
24 Replies
Level 7
Jun 4, 2019 7:34:04 PM

  1. With your return open 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. When you get to Is this a rental property or royalty? select Rental property and fill out the description, address, and owner.
  4. 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.
  5. 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.)

See I sold my rental property. How do I report that?

https://ttlc.intuit.com/questions/1933977-i-sold-my-rental-property-how-do-i-report-that

New Member
Jun 4, 2019 7:34:06 PM

Where do you enter the amount of money you got for the rental? I don't see that any where.

Level 15
Jun 4, 2019 7:34:07 PM
Level 2
Feb 4, 2020 2:44:29 PM

The following statement does seem to be accurate.  Here, you can report the sale in the Sale of Property/Depreciation section, along with any other pertinent info (income, expenses, etc.)

 

HELP!

Level 1
Mar 8, 2020 7:50:21 AM

i cannot find "Jump to" on the screen

Level 1
Mar 8, 2020 7:51:54 AM

Where do I select "jump to" on my device?

Expert Alumni
Mar 8, 2020 7:57:32 AM

To enter the sale of your rental property in TurboTax follow these steps.

  • With TurboTax open enter sale of rental property in the search box
  • Select Jump to sale of rental property in the results window just below the search box
  • Follow the prompts to enter your rental sale information.

Level 2
Jun 24, 2020 12:25:43 PM

Do I just split everything under the Disposition field 50/50? It still does not prompt me for a 1098-S info

Level 15
Jun 24, 2020 1:18:02 PM

After you finish jumping through hoops, try this hoop. 🙂

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.

Level 2
Jun 25, 2020 2:13:46 PM

OK, I got to the Disposition fields, and my 1099-S does not provide the information in the format they are asking
Assett Sales Price
Assett Sales Expenses
Land Sale price
Land sale expenses

There is no where to deduct the mortgage I paid off. I had to look at the tax records for the break down. And if I don't put anything in the expense field (would the mortgage be that) The taxes seem extremely high. 
Plus, this was owned 50/50 between myself and my uncle. -Do I cut everything in half for each tax return?

New Member
Jan 9, 2021 9:19:21 PM

Solution, though steps may vary based on Tax year and therefore version of TurboTax:
When you get to review your real property profile/income/expenses/depreciation, select to Update the "Sale of Property/Depreciation".  You should see the list of "Your Property Assets", and there should be an item corresponding to your property and its depreciation with a name of the asset that you should've entered in the past, for example "Residential". If you don't see it then you might've not maintained this property properly in the previous tax years and may need external help. If you do see it, then click "Edit", then "Continue" and answer "Yes" to the question "Did You Stop Using This Asset 2016?". Then you will be asked several questions, including the date and price of the property you've sold.

Level 1
Jan 27, 2021 11:50:49 AM

I noticed the same problem. Appears to be a bug in the software.

Employee Tax Expert
Jan 28, 2021 6:43:52 AM

The search feature for 'rentals' (must be plural) seems to work on both TurboTax Online and TurboTax Desktop software.

 

If you are searching for the assets to sell you must go to the rental activity to select Edit > Scroll to Assets > Go to the Asset Summary > Select each asset that is sold to enter the appropriate information about the sale. See images below.

 

 

 

 

Level 2
Feb 9, 2021 10:03:10 AM

i followed the steps and got to the rental section and checked the box sold property but i am not able to get the screen to input the sale price etc. can someone help?

Employee Tax Expert
Feb 9, 2021 12:34:46 PM

You need to dispose of the property by telling the software how and when it was disposed of.  Follow these directions.

  • Down the left side, click Federal
  • Click on Income & Expenses
  • Under Your income and expenses, scroll down to
  • Rental properties and royalties, click Edit/Add
  • Do you want to review your rental?, click Yes
  • Under Rent and Royalty Summary, click Edit
  • Click Update to the right of Assets/Depreciation.
  • Do you want to go directly to your asset summary?, click Yes and Continue
  • Click Edit to the right of the assets to be disposed
  • Go through several screens until you get to Tell Us More About This Rental Asset
  • Click on This item was sold…….
  • And continue to answer the questions

See also here.

Level 1
Jan 27, 2022 7:47:26 PM

This instruction does not work.  I follow the prompts and it never asks me to enter the sales information on the rental property.

 

"You can report the sale in the Expenses/Assets (Depreciation) section, along with any other pertinent info (like income and expenses)"

 

Where do I report the sale?

Employee Tax Expert
Jan 27, 2022 8:33:17 PM

Click this link for instructions on How to Report Sale of Rental Property.

 

Basically, there are two sections in the Rental topic where you enter sale info.  In Property Profile, you indicate the property was sold.

 

In the Assets/Depreciation section, you enter the Sales Info.  The Rental must be listed as an Asset here to do this. 

 

If you sold the property in 2021, say YES it was rented all year (which means up to the sale date), unless it was not rented at all in 2021. 

 

If you need more help, post again and we will try to help.  Remember, we can't see your return in this forum. 

 

 

 

 

 

Level 1
Feb 6, 2022 9:56:34 AM

Please help................my home is not listed as an asset, so how do I report the amount of the home sale to figure out Capital Gains??  I am using TurboTax Home & Business 2021.

Employee Tax Expert
Feb 6, 2022 12:29:51 PM

If you sold your primary residence and lived in and owned the home for at least two years in the five year period before the date of sale, you can exclude up to $250,000 of gain.

 

Follow these steps to report the sale: 

  • Across the top of the screen, click on Federal Taxes.
  • At the top of the screen click on Wages & income.
  • Click I'll choose what I work on.
  • Scroll down to Less Common Income.
  • Click Start / Revisit / Update to the right of Sale of Home.
  • At the screen Sale of Your Main Home, click Yes.

You can also click on the magnifying glass in the upper right hand corner of the screen and enter ‘sale of home’.  Then click on ‘jump to sale of home’.

 

The software will walk you through questions to report the sale of your personal home, income and expenses.

 

See also this Best Answer.

Level 1
Feb 7, 2022 5:27:05 AM

Thank you, but it was not our primary residence, it was a rental property.  How would I handle that?  I clicked the box that it was sold, but no where does it ask the sales price.  Should I list it on the asset page?  Currently it is not on there, only furnishings, etc.

Employee Tax Expert
Feb 7, 2022 5:56:41 AM

Yes, you should list the rental home itself as an asset in your rental activity. Be sure to enter the date you first placed this rental property in service for rental use.

 

Be prepared to enter both the building and the land portion of the cost. Once you enter this you will be asked if it was sold or disposed of and TurboTax will lead you the rest of the way through the sale. 

  • Usually you can use the tax assessment to determine the percentage of the cost that applies to land and building.

Depreciation is considered used, even if you did not previously enter the rental home on your tax return. This means that it will reduce your cost basis before calculating the taxable gain on the sale. If it has not been fully depreciated and you did not take advantage of the depreciation in the past, you may be able to amend tax returns for 2018, 2019 and 2020.  For 2018, it must be completed before April 15th.

 

If you other assets such as furnishings are also gone with the home, be sure to mark them sold.  You can enter zero for the sales price if you are entering the entire proceeds in the home and land, if applicable.

 

Here is an example of how to figure out your selling price for each.

 

Use the original cost of each asset listed on depreciation (all belongs to house B now) add those together then divide each one by the combined total to find the percentage of the cost for each asset.  Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset.

 

Example:  Original Cost (of each asset on your depreciation schedule)

$10,000 Land                = 13.33% 

$50,000 House              = 66.67%

$15,000 Improvements  = 20%

$75,000 Total                 = 100%

 

Level 1
Feb 7, 2022 6:01:09 AM

Thank you very much!  When I enter the land and building costs, do I include the cost of the land in the home (building) price from our HUD, or break it down so that the home cost excludes the land cost?  That way both total to equal the sales price.

Employee Tax Expert
Feb 7, 2022 6:25:32 AM

@Swaha155

 

Your HUD statement identifies specific selling prices for the land and the building and improvements?  Please clarify.

 

If your HUD statement breaks down the selling price of the land from the selling price of the building and improvements, use the numbers on the HUD statement.

 

If you reported the separate cost basis for (1) the land and (2) the building and improvements, then you report the the sales price and the cost of sales for both (1) the land and (2) the building and improvements at the screen Sales Information.

 

The sale of the rental property is a sale of two assets, (1) the land and (2) the structure and improvements built on the land.  The land cannot be depreciated, the structure and the improvements can be depreciated.

 

See also this help.

 

Level 1
Feb 7, 2022 6:30:48 AM

No the HUD does not have a breakdown.  My question was do I use the sales price on the HUD as the home cost and then also put the land value on the land line, so the addition of those two numbers would be above the sales price?  OR, do I reduce the home cost by the land value so that when the two numbers are added, the total equals the sales price on the HUD?

 

Also, I realized that I never depreciated the home!!!  An advisor on my thread said I could amend the past 3 tax returns, but I believe I'd have to file 1 3115 to change the accounting method, which would likely be a nightmare.  Is it best just to let that go and eat the loss?