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turbo-1812
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I sold my rental property that I bought 8/27/2012 and sold 8/11/2017. I lived in it for 2 out of 5 years. How do I enter the capital gains exclusion on TurboTax?

 
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DS30
New Member

I sold my rental property that I bought 8/27/2012 and sold 8/11/2017. I lived in it for 2 out of 5 years. How do I enter the capital gains exclusion on TurboTax?

When you are entering the rental property sale under the rental assets section, you will need to let the TurboTax system know that this rental property was considered your primary residence during 2 out of the 5 years before the sale (see below).

See Sale of Your Home for more information on the exclusion.

To enter rental information in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "rental income and expenses" in the search bar then select "jump to rental income and expenses". TurboTax will guide you in entering this information.

  1. Choose “Rental Properties and Royalties” and select “start’ (or “update” is you have already worked on this section)
  2. If your rental property is listed, you will need to select "edit" to access this information. Otherwise enter your rental property information.
  3. Is This a Rental Property or Royalty? - choose rental and put rental information and address
  4. What Type of Rental is This? - choose rental type (ie: Single family (home or unit where a single family lives))
  5. Do Any of These Situations Apply to This Property? - select sold
  6. Was This Property Rented for All of 2017? - answer questions based on your circumstances
  7. Property Ownership - select your ownership percentage
  8. Indicate if you Actively Participate - yes or no (If yes, this allows some of the passive losses to be used against passive income)
  9. Did You Pay Anyone $600 or More for Work Related to This Property? - yes or no
  10. Is Your Property in Any of These Designated Areas? - Usually "none of the above"
  11. Review Your Rental Property Rental Summary
  12. Select Sale of Property/ Depreciation section. Here is some additional information you will need to select under the sale of property section: 
    1. About 3 screens in, if the house is listed under this section, you will select that you want to edit this property
    2. About 4 screens more, check box that you sold the property under "Tell us about this rental asset"
    3. For the special handling screen - say "no" (Please note that if you used FMV at the time of conversion to a rental for your depreciation (as opposed to adjusted basis), you will want to answer "yes" here and enter the sale under the sale of business property section.)
    4. Home Sale - select "yes" if sale of main home.
    5. Sales Information - enter the sales price information  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


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1 Reply
DS30
New Member

I sold my rental property that I bought 8/27/2012 and sold 8/11/2017. I lived in it for 2 out of 5 years. How do I enter the capital gains exclusion on TurboTax?

When you are entering the rental property sale under the rental assets section, you will need to let the TurboTax system know that this rental property was considered your primary residence during 2 out of the 5 years before the sale (see below).

See Sale of Your Home for more information on the exclusion.

To enter rental information in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "rental income and expenses" in the search bar then select "jump to rental income and expenses". TurboTax will guide you in entering this information.

  1. Choose “Rental Properties and Royalties” and select “start’ (or “update” is you have already worked on this section)
  2. If your rental property is listed, you will need to select "edit" to access this information. Otherwise enter your rental property information.
  3. Is This a Rental Property or Royalty? - choose rental and put rental information and address
  4. What Type of Rental is This? - choose rental type (ie: Single family (home or unit where a single family lives))
  5. Do Any of These Situations Apply to This Property? - select sold
  6. Was This Property Rented for All of 2017? - answer questions based on your circumstances
  7. Property Ownership - select your ownership percentage
  8. Indicate if you Actively Participate - yes or no (If yes, this allows some of the passive losses to be used against passive income)
  9. Did You Pay Anyone $600 or More for Work Related to This Property? - yes or no
  10. Is Your Property in Any of These Designated Areas? - Usually "none of the above"
  11. Review Your Rental Property Rental Summary
  12. Select Sale of Property/ Depreciation section. Here is some additional information you will need to select under the sale of property section: 
    1. About 3 screens in, if the house is listed under this section, you will select that you want to edit this property
    2. About 4 screens more, check box that you sold the property under "Tell us about this rental asset"
    3. For the special handling screen - say "no" (Please note that if you used FMV at the time of conversion to a rental for your depreciation (as opposed to adjusted basis), you will want to answer "yes" here and enter the sale under the sale of business property section.)
    4. Home Sale - select "yes" if sale of main home.
    5. Sales Information - enter the sales price information  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


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