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It is rental property. For it to be also considered personal, you would have had to live in the for 2 of the last 5 years as of the date of sale. Since it was not rented in 2018, you will have to enter it in Sales of Business Property.
To this rental sale under the sale of a business property in TurboTax Online or Desktop, please follow these steps:
Additionally, when you sell a property that was used as a rental, 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).
In order to calculate the capital gain or loss when you sell a residence that had been converted to rental property, you need to know three things:
If the converted property is later sold at a gain, the basis for purposes of determining the capital gain is your adjusted tax basis in the property at the time of the sale. If the sale results in a loss, however, the basis used is the lower of the property's adjusted tax basis at the time of the conversion or the fair market value when the property was converted from personal use to rental property. This loss rule ensures that any deflation in value occurring while the property was held as a principal residence does not later become deductible upon your sale of the rental property; a loss on the sale of a principal residence is not deductible. As usual, you calculate your capital gain by subtracting your adjusted basis from the sale price of the property.
It is rental property. For it to be also considered personal, you would have had to live in the for 2 of the last 5 years as of the date of sale. Since it was not rented in 2018, you will have to enter it in Sales of Business Property.
To this rental sale under the sale of a business property in TurboTax Online or Desktop, please follow these steps:
Additionally, when you sell a property that was used as a rental, 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).
In order to calculate the capital gain or loss when you sell a residence that had been converted to rental property, you need to know three things:
If the converted property is later sold at a gain, the basis for purposes of determining the capital gain is your adjusted tax basis in the property at the time of the sale. If the sale results in a loss, however, the basis used is the lower of the property's adjusted tax basis at the time of the conversion or the fair market value when the property was converted from personal use to rental property. This loss rule ensures that any deflation in value occurring while the property was held as a principal residence does not later become deductible upon your sale of the rental property; a loss on the sale of a principal residence is not deductible. As usual, you calculate your capital gain by subtracting your adjusted basis from the sale price of the property.
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