Sale of Rental property

[mtmproperty]

I sold a rental home last year. Do I still file a Schedule E for 2020 or do all those numbers get put into the calculation for the gain/loss on the sale and entered on I believe its Form 4797? 

[HelenC12 · Accepted solution]

Yes, you may still have to file Schedule E to list any income, expenses, and other items prior to the sale. TurboTax will automatically generate the Schedule E and carry the amounts to other forms on your Form 1040, as needed. 

To enter the rental sale, see I sold my rental property. How do I report that?

When you sell a rental, in addition to capital gains, you may have Depreciation Recapture. If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if otherwise nontaxable) as ordinary income. 

• You depreciated the building and other assets in years past. 
• You received the benefit of a depreciation deduction that offset ordinary income tax rates.
• The government is not going to grant the most favorable capital gains rates on the portion of the gain relating to these prior depreciation deductions. 
• For additional information, see IRS Publication 544 Chapter 3 Depreciation Recapture.