The sale of a rental property is considered the sale of a business property, NOT as the sale of a home. To enter the sale of a rental property, please follow the steps below:
If you
haven't already, enter the house and all of your major improvements
as individual assets in TurboTax. Then allocate a portion of the sales
price to each of the assets (house, windows, siding, roof).
To do
this please follow these steps:
- Click on Federal >
Wages & Income
- In the Rentals, Royalties, and
Farm section click on the Start/Revisit box next to Rental
Properties and Royalties (Sch E).
- On the Income from Rentals or
Royalty Property You Own screen, click Yes.
- If you have already started adding
information about your rental, you will come to the Rental and Royalty
Summary screen. Click on the Edit box next to the
property.
- On the screen, Review Your
[property] Rental Summary click the Start/Update box next to Sale
of Property/Depreciation.
- If you have already entered
assets, you will see the screen, Do you want to go directly to your
asset summary? mark the Yes radio button and click Continue.
- On Your Property Assets,
click Edit next to the property.
[If you haven't entered any assets yet,
just follow the screens to add the house as an asset. Once you are
finished you will be brought back to the the Asset Summary to enter the
improvements as assets.]
- When you come to the screen, Tell
Us More About This Rental Asset, mark the box that the item
was sold and enter the date of the sale.
-
You will eventually come to a
screen to enter the sales information.
- Continue through the interview,
entering the requested information.
- You will be brought back to
Your Property Assets. Follow the same procedure with the other
assets related to this property.
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