How do I report the sale of rental property I lived in 2 of last 5 years for 2016 tax year?

Forum|Forum|7 years ago
June 6, 2019
2 replies
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Are the reporting requirements for the sale of rental property that I lived in 2 of last 5 years for the 2016 tax year the same as they were in 2015?

TurboTax Premier Online

Anonymous

To report Sale of Rental Property:

Report the gain or loss on the sale of rental property on Form 4797, Sales of Business Property. Individuals typically use Schedule D (Form 1040), Capital Gains and Losses, together with Form 4797.

For further information, refer to:

Publication 544, Sales and Other Dispositions of Assets,
Publication 550, Investment Income and Expenses,
Instructions for Form 4797, Sales of Business Property, and
Instructions for Schedule D, Capital Gains and Losses.

If you meet tests for Sale of Personal Residence:

It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free.

If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)

You can use this exclusion every time you sell a primary residence, as long as you owned and lived in it for two of the five years leading up to the sale, and haven't claimed the exclusion on another home in the last two years.

If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D.

DBeeles

Level 2

I don't see anywhere in Turbo Tax where it prompts me to list the dates I lived in the rental I sold, or confirm the other criteria that allows the capitol gain exemption. Thank you.