sale of a primary residence that was a rental in the past, with prior depreciation and have unallowed passive income losses

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I sold my primary home, a home I had lived in for 5 years. In the past I rented that home, and claimed depreciation and have unallowed passive income losses from that prior rental period. I assume I will need to account for them now that the home is sold. My question is not about the numbers themselves. Rather, how do I report this in Turbo Tax? One post I saw on this forum said to enter the house on Schedule E with both Fair Rental Days and Personal Use Days as 0. Can anyone confirm this is correct? Or, is there a better way?

Thanks in advance for your time and attention!

[Critter-3]

Just use the sale of home section of the program ... read the screens slowly and carefully.  The closing company should have issued a 1099-S if you told them about the prior rental use ... make sure to click on that 1099-S box when asked if you have one. 

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

Or enter sale of home in the Search box located in the upper right of the program screen.  Click on Jump to sale of home

[Carl]

Since the home was not rented and was 100% personal use in 2021, under no circumstances will anything concerning this property be reported on SCH E. No exceptions.

You'll report the sale in the "Sale of Home (Gain or Loss)" section under the Personal Income tab. Pay attention to every screen. After entering the initial sales/cost basis data you'll be asked if you used the home for anything other than your primary home. You'll select YES on this screen and be asked for the number of days of unqualified use *****AFTER**** 2008.  Then your excluded gain will be pro-rated based on that.

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Thank you for your response. I carefully went through the Home Sale section again. It does include depreciation, which answers that aspect of my question. However, I did not see anywhere to enter the unallowed carryonver losses from the prior rental. Does anyone know where/how to enter those?

[infodoc]

Thank you for your response, but my question is not about the pro-rata excluded gain. Rather, I am trying to figure out where/how to enter the unallowed carry over losses from the prior rental. Does anyone have an answer to that? 

[Critter-3]

Unallowed losses increase the home's basis.  

[Anonymous_ · Accepted solution]

I believe this scenario was addressed in another thread, which included relevant and accurate posts by @AmeliesUncle.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/what-happens-to-the-p...

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Thank you very much - that is right on point. I'm not sure why I didn't find it in my searches.

For any future users coming here looking for an answer, there does not seem to be a clear or easy one.  The tax law itself is complex and confusing, and TT does not provide any assistance or guidance in finding your way.

I was able to complete a sensible pro forma return by completing the Home Sale section, which handles capital gain and depreciation, and also - rightly or wrongly - listing the house on Schedule E with 0 days rental use and 0 days personal use, and no income or expenses.  I am not sure I will file that - it is looking like this may be the year to have a pro prep my returns - but is serves my purposes for now.

The link provided by @Anonymous_ is the best. Here are some others:

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/sold-rental-property-...

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/passive-activity-carr...

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/can-i-use-rental-carr...

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/passive-loss-carryove...

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/does-the-program-auto...

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/what-happens-to-the-p...