The sale of Rental Property is reported
under Wages & Income >> Rental Properties.
You will need both Form 1099-S and the Settlement
Statement (HUD-1) to complete the sale entry.
·
Sales Price – If you received a Form
1099-S, look in Box 2 (Gross Proceeds), which will generally be
your contract sales price. You can also use the gross proceeds amount from
your settlement closing statement.
·
Sales Expenses for selling your property include
sales commissions, advertising, broker and legal fees, and transfer taxes.
·
Basis is your rental's original purchase
price plus settlement costs at time of purchase (abstract, legal, and recording
fees, surveys, transfer taxes, owner's title insurance) .
·
Adjusted basis is your basis plus improvements and
sales expenses minus depreciation.
If you did not use TurboTax last year, you will need to first
enter the property under Assets/Depreciation, then record the sale
from the Rental Summary screen.
1.
With your return open in TurboTax, search for rentals and
then click the "Jump to" link in the search result.
2.
Answer Yes to the question Did you have
any rental or royalty income and expenses?
3.
When you get to Is this a rental property or royalty? select Rental
property and fill out the description, address, and owner.
4.
When you hit Do any of these situations apply? you'll
definitely want to check the Sold box along with any other
boxes that may apply.
5.
Continue following the onscreen prompts to enter info about your
rental property. Eventually you'll get to the Rental Summary screen.
Here, you can report the sale in the Sale of Property/Depreciation section,
along with any other pertinent info (income, expenses, etc.)
Tip: Take your time and pay close attention; there's a lot of
info and it's easy to miss if you're in a hurry.
As you work through the interview sequence, be sure to check the
circle beside "I sold or disposed of this property in 2016".
(see first screenshot below). You can revisit that section again if you did
not.
At the end of the interview, you should see the Rental
Property Summary screen (screenshot #2 below). Click Start next
to "Sale of Property" and work through the interview sequence.
Be sure you mark the asset as sold with the date of the sale (screenshot #3
below). Here is a list of selling expenses:
https://ttlc.intuit.com/questions/2812316. You may also include the cost of repairs needed in
order to close. Repairs prior to listing the property are included under Rental
Expenses.
Complete the interview and TurboTax will calculate the Gain/Loss
on the sale based on your input.