Sounds like you haven't actually closed on the sale in 2016. If the money is only in escrow, it's not available to you and is not considered income until you receive it in 2017. If you have any other details regarding this question, please feel free to post them in the comment section.
Enter your part-year rental on Schedule E as normal. (See the attached screenshot below for the screen to notate part-year rental. Click to enlarge.)
Tip:
If your rental property is located
out-of-state, make sure you first set up that state
properly in Personal Info. That way, when you do your
state taxes, we'll be ready to go.
Now let's enter that rental:
Go into your TurboTax return. Not sure you're
in there? Click on the orange Take me to my return button.
1.
Search for rentals and
then click the "Jump to" link in the search result.
2.
Answer Yes to
the question Did you have any rental or royalty income and expenses?
3.
Follow the
on-screen instructions as you proceed through the rental and royalties section.
o We'll first ask you to enter general information about your rental
(description, address, ownership percentage, etc.)
o Eventually, you'll come to the Rental Summary screen
which is where you enter your:
·
Rental income
·
Rental expenses
·
Capital assets and
depreciation
·
Vehicle expenses
If you're also filing a nonresident state
return to report income from an out-of-state rental property, be sure to
complete your nonresident state return before you prepare your resident state
return when you get to the State Taxes section.
Tip:
Rent is considered income in the year
you received it, not the year it applies to. This means that a
rent payment for the month of January 2017 collected in December 2016 is
reported on your 2016 return.
