2570017
So I have read quite a few discussions on this topic and it still isn't clear to me if I should report my rental sale under the Business Income and Expenses under "Sale of Business Property" or under "Rental Properties and Royalties". Depending on where I enter the information, I get two very different answers for how much is owed in taxes. I feel like the "Sale of Business Property" asks more questions about Cost Basis, Depreciation, etc. , wheras the Rental Section really asks very little other than purchase price and date sold. Can anyone tell me where the correct place is to report this? I also feel like the tax burden that TT is reporting is much greater than I calculate when doing it by hand. Any insight?
I appreciate the help!
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The sale of the rental is reported in the "Rental Properties and Royalties" section,
HOWEVER, initially the program only asks for information needed to calculate the 2021 rental expenses.
I found that I had to click DONE, but then go back to Rental Properties and Royalties" and click UPDATE
Answer "YES" to Do you want to review your rental and royalty information" on the Income from Rentals or Royalty Property You Own screen.
Answer the question about being a Real Estate Professional and Continue
Select EDIT for the property in order to enter the sale.
When you select EDIT, a new screen is displayed showing the Summary.
On this screen scroll down to "Sale of Property/ Depreciation" to report the sale of the rental property.
In your Forms (online as well) you should see a "Disposition Report" concerning the sale of the rental.
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