Where to report Sale of a Rental Home that was once a Primary Residence?

[bogfrog11]

We bought a house in August 2010, lived in it until July 2012, began renting it in August of 2012, and sold it in August of 2018. We took depreciation from 2012 through 2018. Where do I report the sale? Do I have to report the sale in two places, a portion in Sale of a Business Property and another portion in Sale of a Second Home? 

[Coleen3 · Accepted solution]

You will enter it in the Rental section, since it was rented in 2018. There will be two entry places for the sale. 

No, you no longer need to include the personal portion. Had you lived in the home as a main home for 2 of the 5 years prior to the date of sale, you could have potentially been able to exclude some or all of the gain.

[bogfrog11]

Hi Coleen, those really aren't the screens that I'm seeing. The program is asking if the business use of the property varied over the time we owned the house. It did vary since it was our primary residence for 2 of the 8 years we owned it, correct? Or am I interpreting that incorrectly. If that's true, then it says the program can't calculate the sale information.

[Coleen3]

You are interpreting it incorrectly. Once it is converted, it is 100% business property, unless you have short term rentals and continue to use the house as a vacation home.