Lived in a house 33 years, tried to sell, then rented out for 2 years, put back on market for 1 year, and sold home. Did not live in 3 of the last 5 years. Where report?

[JulieH1 · Accepted solution]

The exclusion actually says that you have to live in the home for 2 out of the last five years to get the exclusion.  If you did not live in the home for the 2 years, then you will pay capital gains taxes on the profit of the home.

When you enter your basis, make sure you add all of the improvements you can document that you made over the last 33 years.

Open (continue) your return in TurboTax. If you’re not sure you’re in your return, select the Take me to my return button.

1. In the upper right corner, search for home sale and then select the "Jump to" link in the search results.
2. Answer Yes to "Did you sell or have your home foreclosed in 2017?"
3. Follow the screens to enter your info.

If that does not work,try this:

• Click on Federal Taxes (Personal)
• Click on Wages and Income (Personal Income)
• Click on I'll choose what I work on
• Scroll down to Less Common Income
• On Sale of Home (gain or loss), click the start or update button

[kskipper146]

I agree with what you say, but when I told turbo tax that it was rented out, it wants me to report it as self-employment income.  I have a little tax knowledge and I don't think that is correct.  I do think it might need to be reported as investment income since it was rented.  If I do the "home sale" search, will it put it into investment income?

[JulieH1]

It will only list it under investment if you enter it under the rental.  Read this link which has a lot of good information to help you before you decide where to enter it.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/4950933">https://ttlc.intuit.com/replies/4950933</a>

[kskipper146]

I will read this.  Thank you!