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Level 2
posted Feb 4, 2021 4:17:00 PM

Small claims judgement received in 2020 for a rental property that I no longer own.

 I received a small claims judgement in 2020 for property sold in 2018.  If I still owned the property I would add the judgement to rental income and the attorney's fees to the appropriate line.  However, I no longer have a Schedule E for this property.  How should I handle this in Turbo Tax?

 

Thanks

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1 Best answer
Expert Alumni
Feb 4, 2021 4:39:42 PM

You would enter this as Other Income.

 

Since this is, in effect, recapture of deductions you claimed on past tax returns.

 

To enter in TurboTax go to:

Federal Taxes -> Wages & Income -> I'll choose what I work on -> scroll to the bottom and under Less Common Income select Start (or Update) for Miscellaneous Income.... You'll find all sorts of other income categories in there. If none of those shown fit the bill then pick Other reportable income and you can enter your own description(s) and amount(s).

1 Replies
Expert Alumni
Feb 4, 2021 4:39:42 PM

You would enter this as Other Income.

 

Since this is, in effect, recapture of deductions you claimed on past tax returns.

 

To enter in TurboTax go to:

Federal Taxes -> Wages & Income -> I'll choose what I work on -> scroll to the bottom and under Less Common Income select Start (or Update) for Miscellaneous Income.... You'll find all sorts of other income categories in there. If none of those shown fit the bill then pick Other reportable income and you can enter your own description(s) and amount(s).