We sold a rental home in 2018 that we lived in for 2 of the last 5 years so should qualify for the exclusion, how and where should we report the sale of that home?

[Carl]

Where you report it, depends on who the last person was to move out of the home prior to the sale. Was a paying tenant the last to move out? Or were you the last the move out?

[sharon191]

paying tenant was last to move out

[Coleen3]

If the property ewas rented in 2018, enter all your information in the Rental section. There are two screens on which you will need to indicate the sale. See the screenshots below.

If it was not rented in 2018, you will need to enter it under sale of main home. There, you can recapture your depreciation.

1. Once you are in your tax return (for TurboTax Online sign-in, click Here), click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose “Sale of Home (gain or loss)” and select “start’
6. You will want to use the "Easy Guide" to determine the adjusted basis on this home 

Say "yes" that you sold your main home and TurboTax will guide you on entering this information

[Edited 3/19/2019 [1:45PM]

[Carl]

" Both sections will give you the opportunity to exclude your primary home gain."
No, that's not right. The "sale of business property" section does not give the option to the exclusion. Additionally, on the 2nd image, selecting "I always used 100% for business" would not be true if you qualify for the "2 of last 5" exclusion.

[Coleen3]

It's just a picture of the screen.

[Carl]

If the owner was the last to move out, the sale is reported in the "sale of home" section. If the tenant was the last to move out, then it's reported in the "rental & royalty income" section. Those two sections do allow for the exclusion.