Sale of rental property that used to be primary residence

[DaveF1006]

Yes, there should be depreciation recapture. Let's see if you did the right steps.

1. if using Turbo Tax Online, navigate in the rental section where it says Here's single family's rental property info. Scroll down the page until you see the button that said sold rental property. Should be under the expenses. Select start or edit.
2. First screen should say your property assets. Here select edit next to your property.
3. Next screen says Tell Us About This Rental Asset
4. Here record the cost that you paid for it including the land. Your cost is going to be different than the FMV you listed above but you can use the same ratio to allocate the cost of the building to the land when you first bought it.
5. Next screen, tell us more about your rental asset. Here you will say that the item was sold....Then you you list the date the house was sold. Also in the same screen, it will ask if you used the house strictly for business, you will say no, you did not use this 100% of the time for business.
6. Then you will check that you used this for personal reasons prior to using it for business. 
7. Then you will put the date that you used this for business, meaning the house was ready to rent on this date. then it asked the percentage of the time you used it in 21021, you will say 100%.
8. Next screen will say Confirm Your Prior Depreciation.  Here is the depreciation amount Turbo Tax calculates for you based on the time you put your rental into service until you sold it
9. After you are done with this, for 4797 should show up in your forms. If you are in Turbo tax Online, go to tax forms>forms>delete a form>check to see if Form 4797 shows up. Don't delete it!!
10. Let us know if this works.

[Kev27]

It's actually the turbotax premier for PC and not online.   If you have the instructions on how to properly record rental income in premier that would be great!

[MarilynG1]

Click this link for into on .Reporting Rental Income/Expenses.

First set up your property in the 'Property Profile' section and in the 'Asset/Depreciation' section.

Then you can add Income/Expenses for 2021.

Click this link for steps on How to Report Sale of Rental Property.

This link has info on Depreciation you may find useful.