Sale of Rental after living in it for 2/5 years.

[tynoa22]

I reported the sale of a rental property that I lived in as my main home for 2.5 years of the 5 on the date of sale. I expected those responses and my reporting of that to result in a form 4797 or schedule D and a recapture of past depreciation, but that did not occur. I have filed and need to know what (what fields need completing, etc., as I followed the help sections) to do to amend. I followed all the sections on help and it doesn't appear it was factored in properly.

[NancyG]

To report Sale of Rental Property:

Report the gain or loss on the sale of rental property on Form 4797, Sales of Business Property. Individuals typically use Schedule D (Form 1040), Capital Gains and Losses, together with Form 4797.

For further information, refer to:

• Publication 544, Sales and Other Dispositions of Assets,
• Publication 550, Investment Income and Expenses,
• Instructions for Form 4797, Sales of Business Property, and
• Instructions for Schedule D, Capital Gains and Losses.

[tynoa22]

I understand all that but need help with what section in turbo tax do I complete this information in to trigger these forms?

[NancyG]

The sale of Rental Property is reported under Wages & Income >> Rental Properties. You will need both Form 1099-S and the Settlement Statement (HUD-1) to complete the sale entry. TurboTax will ask you about the conversion from personal to rental use.

If you did not use TurboTax last year, you will need to first enter the property under Assets/Depreciation, then record the sale from the Rental Summary screen.

Access this area of TurboTax under Federal Taxes >> Wages & Income  >> Rental Properties & Royalties.

As you work through the interview sequence, be sure to check the circle beside "I sold or disposed of this property in 2016". You can revisit that section again if you did not.

At the end of the interview, you should see the Rental Property Summary screen. Click Start next to "Sale of Property" and work through the interview sequence. Be sure you mark the asset as sold with the date of the sale. You may also include the cost of repairs needed in order to close. Repairs prior to listing the property are included under Rental Expenses.

Complete the interview and TurboTax will calculate the Gain/Loss on the sale based on your input.