Since you are using the desktop version, you can save a second copy of your federal tax return (under your name with "estimate of rental sale" added to the .tax2015 title.
You will look at the capital gains tax amount on line 13 and Schedule D to see what additional amount will be included as capital gains.
Here is the way to enter the sale of the rental (remember to use a separate file from your originally filed one.
When it comes to the sale of your rental, it is
important to determine the basis in the property (usually cost plus capital
improvements less depreciation (less any casualty loss, if any)) because this
will determine that amount of capital gain or loss. Rental income/expenses for
the year (unless deprecation or expenses directly related to the sale) will not
be included in your capital gain or loss calculation.
Additionally,
when you sell your property, 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). .
To
enter your rental sale under the rental section in TurboTax Online or Desktop,
please follow these steps:
- Once
you are in your tax return, click on the “Federal Taxes” tab ("Business"
tab in TurboTax Home & Business)
- Next click on “Wages &
Income”
("Business Income and Expense" in TurboTax Home &
Business)
- Next click on “I’ll choose
what I work on” (Jump to full list)
- Scroll down the screen until
to come to the section “Rental Properties and Royalties”
- Choose “Rental
Properties and Royalties” and select “start’ (or “update” is you have already
worked on this section)
- If your rental property is
listed, you will need to select "edit" to access this
information. Otherwise enter your rental property information. (If you are
entering your rental information for the first time, you will need to add
the rental house as an asset under step 16)
- Is This a Rental Property or
Royalty? - choose rental and put rental information and address
- What Type of Rental is This?
- choose rental type (ie: Single family (home or unit where a single
family lives))
- Do Any of These Situations Apply to
This Property? - select sold (screenshot #1)
- Was
This Property Rented for All of 2015? - answer questions based on your
circumstances
- Property Ownership - select
your ownership percentage
- Indicate if you Actively
Participate - yes or no (If yes, this allows some of the passive losses to
be used against passive income)
- Did You Pay Anyone $600 or
More for Work Related to This Property? - yes or no
- Is Your Property in Any of
These Designated Areas? - Usually "none of the above"
- Review Your Rental Property Rental
Summary (screenshot #2)
- Select Sale of Property/ Depreciation section. Here is
some additional information you will need to select under the sale of
property section:
- About
3 screens in, if the house is listed under this section, you will select
that you want to edit this property
- About 4 screens more, check
box that you sold the property under "Tell us about this rental
asset" (screenshot #3)
- For the special handling
screen - say "no"
- Home Sale - select
"yes" if sale of main home.
- Sales Information - enter
the sales price information (screenshot #4) You will need to allocate the
net sales proceeds into asset sale and land sale. If your proceeds are
not allocated, you can use the same percentage of asset and land from the
original purchase for the sales proceeds allocation
