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irongirltx
New Member

Sale of rental property

TT is asking if I sold my rental property this year and I click yes - but it doesn't ask me any questions about sale price, etc. When I enter the information in the sale of business section, it calculates a tax rate of 30% instead of 15%. Have all the forms been updated for rental property?

20 Replies
tagteam
Level 15

Sale of rental property


@irongirltx wrote:

TT is asking if I sold my rental property this year and I click yes - but it doesn't ask me any questions about sale price, etc. 


You need to go through the Sale of Property/Depreciation section (see screenshot).

 

rent.png

 

 

irongirltx
New Member

Sale of rental property

I've completed that section - but it doesn't ask me for the sale price or information from the 1099-S.  It's not calculating any gains in that section.  Is the section complete yet or are there still more updates pending?

tagteam
Level 15

Sale of rental property

Are you certain you checked the box indicating that you sold or disposed of the property in 2019 in the Property Profile section??

 

You then also need to indicate that you sold (or disposed) of the "item" in the Sale of Property/Depreciation section and the date you sold or retired it from use.

irongirltx1
New Member

Sale of rental property

OK - If I say the property has been a rental the entire time owned I get to proceed forward.  If I indicate there's been different percentages of business use during the ownership period - it just kicks me out.  The property was my main home for 2.5 years before being a rental for 8 years.

 

So I indicated the percentage of business use was consistent - although it never asked me what the percentage was.  I then went thru and entered the information to calculate the gain on the sale - which came out to be $29K.  Then it calculated the tax at $7,200!  That's a 25% tax rate on a long term capital gain.  The only tax rates available on long term gains are 0% (up to income of $51K), 15% (from $51K to $434K) and 20% (over $434K).  So how is it calculating at 25%  I'm definitely falling in the 15% income level - so what is causing the issue? 

 

It's also saying I have a penalty of $167.  Last I knew you didn't have to pay estimated taxes on capital gains.  So why is it calculating a penalty?

 

I've used TT for more years then I want to admit to.  This is the first time TT is causing me headaches and not calculating items correctly.

 

Please help!  

tagteam
Level 15

Sale of rental property


@irongirltx1 wrote:

...Then it calculated the tax at $7,200!  That's a 25% tax rate on a long term capital gain.


If you are seeing a 25% tax rate, that would be unrecaptured Section 1250 gain (depreciation recapture) which is taxed at ordinary income tax rates up to a maximum of 25%.

 

Further, the penalty for underpayment of estimated tax is not limited to a particular class of income, such as only earned income; it applies across the board.

 

If you want to throw out some numbers (even if they are rough approximations or hypothetical), I can run them through a test return in order to check whether or not there is some sort of program (or entry) error.

authur100
Level 1

Sale of rental property

After I entered the update for "Sale of Property/Depreciation", it only asked questions for Depreciation but

never ask for sale questions. Where it asks for sale info ? Please snapshot if you could because I don't think it's available.

ColeenD3
Expert Alumni

Sale of rental property

Please see the screenshots below. The first ss is the first time you will be asked if you sold.

 

 

 

 

ColeenD3
Expert Alumni

Sale of rental property

Second screenshot is the second place you will indicate that it is sold.

tagteam
Level 15

Sale of rental property


@authur100 wrote:

After I entered the update for "Sale of Property/Depreciation", it only asked questions for Depreciation


You also need to indicate the property was sold in the Property Profile section (see @ColeenD3's first screenshot).

mseldes
New Member

Sale of rental property

Coleen,

Where is the screen you showed in your reply on the rental sale.  I cannot find it.  I only see the screen where I indicate the rental was sold in the property profile.

 

Thanks,

Michael

tagteam
Level 15

Sale of rental property

@mseldes Those screens should be under Sale of Property/Depreciation if you indicated you sold the property in Property Profile.

katcan
New Member

Sale of rental property

I'm having the same issue with no info under the deduction section relating to the sale. I elect no deception and that section is finished.  I selected that I sold my rental property, but I cannot find the 2 SS you are referring to under "tell us more about this rental assets." I did not elect that I converted the property this year, should I have to see these questions?

KathrynG3
Expert Alumni

Sale of rental property

Try going back through this section and do not elect no depreciation. When selling a rental property, there must be a depreciation calculation.

 

It would be helpful to have a TurboTax ".tax2019" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions:

 

On your menu bar at the very top, click “Online” and then “Send Tax File to Agent”. When you click to send, you will get a pop-up with a token number. Reply with the token number and I’ll be able to open a TurboTax Business file with your numbers but not your personal information. That may help diagnose the issue.

marcost
Returning Member

Sale of rental property

Hi KathrynG3,

I have similar issue.

Sold a rental property last December and when trying to input the sale info I get nowhere.

I have never taken depreciation on the property because I bought it for $30,000 and now sold for $159,900.

Of course, I did a lots of work on it and investment on all appliances.

Any help you can provide would be appreciated.

thanks,

marcost

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