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New Member
posted Jun 6, 2019 12:34:03 AM

We bought a house in 1994. We lived in it until 2007 - we rented it out. In 2008 we moved back into the house as our primary residence. Please help!

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1 Best answer
Expert Alumni
Jun 6, 2019 12:34:10 AM

The sale of you home will be reported like any sale of a residence with the exception of the depreciation claimed.  Because the depreciation deduction reduced your income in the past, this amount must reduce the cost basis to determine gain, if any.  It's possible there will be no taxable gain since it was rented for only one year.  TurboTax will walk you easily through the process.

Follow the steps below to report the sale of your primary residence.

  1. Sign into your TurboTax account.
  2. Select Federal in the black navigation panel on the left
  3. In the search box, upper right, type sale of home > jump to sale of home
  4. Follow the screen prompts to enter your sale
  5. Choose "Easy Guide" and let TurboTax ask all the right questions.
  6. Click the image attached to enlarge and view.

The depreciation for the one year will be calculated by finding your cost basis at the time it was placed in service as a rental (2007) reduced for land value, then multiplied by 3.636%.  

3 Replies
Expert Alumni
Jun 6, 2019 12:34:05 AM

Could you provide more details so we can better answer your question?  Did you sell it? Do you want to know how to account for the depreciation used during the rental period?

New Member
Jun 6, 2019 12:34:08 AM

I am sorry - I thought I added that.  We moved back in - 2008.  Closed on the sale in August 2017.  Thanks!

Expert Alumni
Jun 6, 2019 12:34:10 AM

The sale of you home will be reported like any sale of a residence with the exception of the depreciation claimed.  Because the depreciation deduction reduced your income in the past, this amount must reduce the cost basis to determine gain, if any.  It's possible there will be no taxable gain since it was rented for only one year.  TurboTax will walk you easily through the process.

Follow the steps below to report the sale of your primary residence.

  1. Sign into your TurboTax account.
  2. Select Federal in the black navigation panel on the left
  3. In the search box, upper right, type sale of home > jump to sale of home
  4. Follow the screen prompts to enter your sale
  5. Choose "Easy Guide" and let TurboTax ask all the right questions.
  6. Click the image attached to enlarge and view.

The depreciation for the one year will be calculated by finding your cost basis at the time it was placed in service as a rental (2007) reduced for land value, then multiplied by 3.636%.