Selling a rental property in 2025

[wingchang]

How do I report that I sold a rental property in 2025?  

I've been through all FAQ and suggestions, but cannot find the 'sold' checkbox, in the Rental profile section.

Please show a screen shot of how this can be reported.

thanks

[M-MTax]

You have to enter the sale in the Assets section (Assets/Depreciation).

[Vanessa A]

When you first start the rental section, there will be a do any of these situations apply to this property page.  On this page select I sold or disposed of this property in 2025.   After doing so, you will continue through until you get to the rental summary screen where you will select sale of property/Depreciation.  This does not show up unless you select the box to say you sold the property in the original screens. 

[wingchang]

Thank you for the response. I use Turbotax Premier, and don't see these screens, am I using the right product?

I only see the rental profile.

[M-MTax]

Premier used to have a section for Rentals. There should be a Profile section along with an income, expense, and asset section.

If you have desktop Premier you could always use Forms Mode and the asset entry worksheet.

[bazbsg]

In my case I sold a property in 2025 that had no tenants during 2025. So Turbotax removed the property. I tried to add it back but it deleted it again due to no rental income in 2025. Do I have to pretend I had income to keep the property in TT then do the sale then change it back to no income? Or will it be deleted again then? Thanks! 

[M-MTax]

@bazbsg I believe I read where you can simply put $1 in as rental income and TurboTax will not delete the rental.

[bazbsg]

I believe my property got deleted because it was rented for 0 days. But I will try both 1 day and 1 dollar and report back here. Thanks!

[M-MTax]

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@bazbsg wrote:

I believe my property got deleted because it was rented for 0 days.

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I believe you are correct; you have to put at least one day of rental use in the Rentals section, or it will get flagged after review. I don't believe you need to enter a dollar figure.

[bazbsg]

I hope when TT deleted the property it didn't delete the depreciation information. If it did TT won't be able to calculate the gains or tax correctly. I'll have to start over from scratch.

[bazbsg]

Well sadly, all the 14 years of depreciation information were also deleted. So I have to start over so I can reimport the 2024 information. Thanks TT.

[Vinayaksant]

I am facing the similar problem in Premier 2025 desktop version. Thanks for these steps and screenshots. I get to the screen "your property assets". In this I see my property and HVAC replacement as 2 separate line items.  When I edit the property, it shows the property information including the date it was converted to rental (it was my personal residence for 3.5 years and used as rental for next 2 years) , Cost, land prior depreciation etc. In next screen, it also asks for date of sale. In subsequent screen, it asks for "special handling required?". When I said "yes" it gives me depreciation for FY 2025. However, it does not prompt me to enter sale information such as building value, land value, agent commissions etc to calculate the capital gain.  Where should I enter this information? 

Also, how can I make sure that I get capital gain tax exemption for the 3.5 years of use as a personal residence. I will appreciate your help.

[DianeW777]

Here is the full example and explanation on how to handle your sale of your rental and your personal home. Leave your answer of 'Yes' to Special Handling. Be sure to collect all depreciation amounts from both the house and the HVAC.

Home Sale with Rental and Home (assumes no home office expense) 

When you enter the home sale in TurboTax it will ask for a couple of items that are needed to report the sale correctly.  

1. The total depreciation expense that was allowed during the period it was available for rent. Check your prior tax returns for this figure from the rental.
2. The number of days the property was available for rent during the ownership period.

Results:

1. The amount of depreciation that was allowed will be completely taxable up to the amount of gain received on the sale.
2. The remaining gain if any, will be split between taxable and amount eligible for exclusion by using the following formula.
   • The total days available for rent will be divided by the total days owned to determine the portion of the remaining amount of gain that is taxable for the rental period
   • The balance will be eligible for the home sale exclusion
3. TurboTax will do all the calculations based on your entry

Steps to enter the Sale of Home in TurboTax: Wages and Income > Less Common Income > Sale of Home

1. On the screen Primary use of home select 'Yes'
2. Enter the number of days used as a rental (nonqualified use)
3. Continue to Depreciation after May 6, 1997 > Enter the total depreciation for rental and home office in both boxes

This will allow TurboTax to handle the sale with the correct amount of taxable gain and excluded home sale gain. 

@Vinayaksant