I sold a rental house and got paid 85000$ out of wich 53000 was the mortgage , how do i add just the gain of 32000

[jerry2000 · Accepted solution]

The mortgage payoff does not figure in to the calculation at all.You do not add just the gain. You must enter your cost basis plus any improvements and then you have to recapture any depreciation that you took or could have taken. Turbotax will lead you through all of that. And you can not do that with the Free edition, you will have to upgrade to the Premier edition for that transaction.