If you had a gain, that gain is taxable. Buying a new rental does not change that unless you set up a Like Kind exchange in advance and adhered to the dates allowed to follow through.
If you rented your first property at all in 2018, you will need to enter your information in the Rental Section. If not, enter it in Sale of Business Property. Your entries will be transferred to Form 4797 Sales of Business Property. Any rental income or expenses for the year will be on Schedule E.
Enter the rental:
Go into your TurboTax return. Not
sure you're in there? Click on the orange Take me to my return button.
- Search for rentals and
then click the "Jump to" link in the search result.
- Answer Yes to the question Did you have
any rental or royalty income and expenses?
- Follow the
on-screen instructions as you proceed through the rental and royalties
section.
- We'll first
ask you to enter general information about your rental (description,
address, ownership percentage, etc.)
- Eventually,
you'll come to the Rental Summary screen
which is where you enter your:
- Rental
income
- Rental
expenses
- Capital
assets and depreciation
- Vehicle
expenses
If you're also filing a
nonresident state return to report income from an out-of-state rental property,
be sure to complete your nonresident state return before you prepare your
resident state return when you get to the State Taxes section.
