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adrianfrankfurte
Level 2

I lived in a house for almost 2 years then rented it for another 2 and sold it. I moved out of state due to health reasons. How do I show that on my tax return?

The house was my primary residence for 23 months. I rented it afterward for just over 2 years and sold it last year. I moved because of my wife's health issues (though not officially documented or advised by a physician - so I don't have anything that would state so). I would like to be able to count the 23 months that it was my primary residence towards my gains. How would I do that?
5 Replies
ColeenD3
Employee Tax Expert

I lived in a house for almost 2 years then rented it for another 2 and sold it. I moved out of state due to health reasons. How do I show that on my tax return?

You can take a partial exclusion.

 

Does Your Home Qualify

 

If you don't meet the eligibility test, you may still qualify for a partial exclusion of gain if you moved because of work, health, or an unforeseeable event. You can qualify either by meeting a set of standard requirements (the “safe harbor” provisions) or by showing enough facts and circumstances to validate your claim

 

To enter the sale of your home in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
  3. Next click on “I’ll choose what I work on” (jump to full list)
  4. Scroll down the screen until to come to the section “Less Common Income”
  5. Choose “Sale of Home (gain or loss)” and select “start’

Say "yes" that you sold your main home and TurboTax will guide you on entering this information.

 

You will still need to recapture any depreciation for the time it was a rental.

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adrianfrankfurte
Level 2

I lived in a house for almost 2 years then rented it for another 2 and sold it. I moved out of state due to health reasons. How do I show that on my tax return?

Ok, so even though I converted the property to a rental property and never lived there again, I would go this route? I've been depreciating it the last couple years.

ColeenD3
Employee Tax Expert

I lived in a house for almost 2 years then rented it for another 2 and sold it. I moved out of state due to health reasons. How do I show that on my tax return?

If the last thing that happened was that it was a rental, then you should enter it in the rental section. You will also be asked there if it was a personal home that qualifies for the exclusion.

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adrianfrankfurte
Level 2

I lived in a house for almost 2 years then rented it for another 2 and sold it. I moved out of state due to health reasons. How do I show that on my tax return?

If I show the property as sold under the rental section, which calls for me to add in the Business Sold amount, expenses and Business Land Sale (I assume thats just part of what the assessor determines the land value to be), but then I want to get the 2 out of 5 year tax exemption, would I then have a separate entry for "Main Home" under Income to do that? 

ColeenD3
Employee Tax Expert

I lived in a house for almost 2 years then rented it for another 2 and sold it. I moved out of state due to health reasons. How do I show that on my tax return?

 

 

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