Partnership rental house sale at loss

[leekwok]

We sold our partnership rental house on August 2019 at a loss. Original purchase price (2012) was $300K, sold price (2019) at $250K, we only got the HUD information from Title company. We own this rental house for many years and we always use Turbotax Business software. Can you please help us where we can claim the loss in Turbotax Business 2019 software? Should it be in Dispose of Rental Real Estate Property?

Thank you for your help!

[Carl]

If this was a partnership then I expect you filed an IRS Form 1065 Partnership return each year, and each partner received a K-1 each year for their personal tax return.

If so, you'll report the sale on the 1065 Partnership return where all prior depreciation will be recaptured

purchase price (2012) was $300K, sold price (2019) at $250K

So more than likely after the depreciation recapture, you have a taxable gain. But gain or loss, it will be on the K-1 each partner gets. THe gain if any, or the loss if any will be dealt with on the personal tax return by the program, after each partner enter's their K-1 data.

we only got the HUD information from Title company

The HUD-1 form is all you need really.

When you purchased the property you used the HUD-1 form to initially enter and set up the rental. Now with the HUD-1 you got from the sale, you'll use that to report the sale. The sale will be reported on the 1065 Partnership return - not your personal 1040 tax return.

[tagteam]

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@leekwok wrote:

Should it be in Dispose of Rental Real Estate Property?

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Yes, Rental real estate dispositions (click Update or Start to the right) under Rental Real Estate Income.

[leekwok]

Thank you for your help Carl!

[leekwok]

Thank you for your help tagteam!

[jlha1952]

I sold a rental house and I have a partner.  How do I report the  sale so I do not have to be responsible for all the earnings affecting my return negatable?

[SweetieJean]

@jlha1952 

As indicated above, if this was indeed a partnership, then you should have filed an IRS Form 1065 Partnership return each year, and each partner received a K-1 each year for their personal tax return.

If this was not done, please see a local tax professional.

[Vanessa A]

You will only report your half of the earnings and expenses.  If the partnership is 50/50 then you would claim half of the income and half of the expenses or whichever way you claimed income and expenses during the time you owned the rental properties.