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Rental prop where is "Sale of Business Property" section to enter rental property that was not rented in 2017? How do I update cost basis due was primary residence prior?

Thx for response below from Colleen. The sale did result in a gain.  Pls advise if I simply input new cost basis using 2003 purch price plus improvements 2003-2011, less prior depreciation during when it was a rental (2011-2016). Would I input this info since I did not collect rent in 2017? As if it were a new asset and just indicate sale?

Turbo Tax Xchage response 4/12/18:

It is correct that if you did not rent it in 2017, you will not report the sale in the rental section. You will enter it under Sales of Business Property.

Yes, your cost basis will include improvements.

When you converted the property from personal use to rental, the basis for depreciation was lower of the Adjusted Basis or the FMV on the date of conversion.

Now that you are selling, it gets a little trickier.

Calculating Gain/Loss on Subsequent Sale of Rental Property

If a residence converted to rental property is later sold at a gain, the basis in the converted property is the original cost or other basis plus amounts paid for capital improvements, less any depreciation taken.


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1 Reply
Coleen3
Intuit Alumni

Rental prop where is "Sale of Business Property" section to enter rental property that was not rented in 2017? How do I update cost basis due was primary residence prior?

To add Form 4797 to your return:

  1. Select Take to my tax return, search for 4797, sale of business property (use this exact phrase) and then choose the "Jump to" link in the search results.
  2. On the Any Other Property Sales? screen, select the first checkbox and click Continue.
  3. Follow the instructions to complete the form.
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