SOLD MORE THAN 2 HOUSES--CAN'T FIND A VERSION OF TT THAT SUPPORTS THIS

[patbrogan]

I Bought the home and business and again the limit of property sales is 2. I sold. 6. I can't even add the right schedule and override to get data in. I spent an hour on hold before buying to ask which version would support more than 2 housing transactions and got nowhere. I need to model my gains to plan taxes before YE and am stuck in the 2021 Home and business with these limitations. Help!

[Mike9241]

more info is needed. tell us what each of the 6 houses was used for. rental, personal residence, vacation home. if there were multiple conversions of a personal residence to rental or vice versa, see a pro.

[patbrogan]

We sold one primary with a tax-free exclusion plus 5 prior non-decreciated rentals.

[patbrogan]

Correction: one primary that had been inherited and lived in 5 years; one vacation house and 4 non-depreciated rentals.

The other new addition is a K-1 for a new boat put into a charter program (as our LLS) which under the 2107  bonus depreciation 179 allows us to take 100% depreciation in year 1 which we would use to offset the house gains.  So looking for professional advice on that too.

[Carl]

If you really did sell four rental properties that you did not depreciate, then you can't use TurboTax at all. You're required by law to depreciate any business property utilized for the production of income. That includes rental property real estate.  Having sold the properties and never having depreciated them is a big problem. TurboTax isn't designed or intended to handle existing problems like this. So you need to forget TurboTax and seek professional help. This is especially true if your state also taxes personal income, as your issues for not having depreciated the properties are most likely, going to be quite a bit more complex.

[Mike9241]

what do you mean 5 prior non-depreciated rentals?  if the properties were rentals, taking depreciation was required (unless these were considered personal use properties because they were rented below fair market rental).  when you sold them regardless of whether or not you took depreciation the tax laws allowed you must report the gain/loss as if you did fixing this requires filing form 3115. Otherwise, you get no tax benefit for the depreciation you should have taken, but pay taxes on the phantom recapture.  likely each rental should have been reported on its own schedule E.  Turbotax would have no problems handling the sale of these properties if there wasn't the issue of depreciation. 

the home sale exclusion generally would apply to only 1 sale every two years.  your situation seems to be convoluted.  I think your situation warrants the use of a tax pro. 

[Rick19744]

In addition to what has been discussed, you mention a K-1 along with bonus depreciation and Section 179 in the same sentence.

Bonus depreciation and Section 179 are not the same and one has business income limitations in order to benefit currently.

As a result, this adds to the recommendation that you meet with a tax professional to sort through what you have so a complete and accurate tax return can be filed.