If I had a rental property that I sold in 2022, but it had been vacant since 2021, how do I report the income from the sale in Turbotax?

[pjschofield]

When going through the Rental section, it asks if I sold or disposed of the property.  Then it asks how many days it was rented in 2022, the answer is 0, so then it tells me there is nothing to report.  How do I add the income from the sale and deduct the selling costs.  I'm at a loss here.

[DianeW777 · Accepted solution]

If the property was vacant because you had no tenants it would still be rental property until the day it was sold.  It is not necessary to enter income or expenses if there are none.

To report the sale you would indicate the property was purchased and also sold, retired, ...... etc. Next you would select 'Yes' it was always used 100% of the time for business (this assumes there was no personal use of the home before the sale). Enter the date of sale and then TurboTax will ask you about the sale, including sales price, selling expenses, etc. It will allow depreciation up to the date of sale and would include that as part of the sales process for any gain on the sale. See the image below.

Depreciation is recaptured at the time of sale and is taxable at a maximum 25% tax rate up to the amount of gain.  If there is gain in excess of the depreciation claimed the excess will be taxed at a maximum rate of 20% if it was held long term (more than one year).

Please update here is you have more questions.