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phu
Level 2

Sales of Rental Property with 2 years of primary residence

I purchased a condo in November 2012. I used it as a primary residence until Jul 2015, which qualifies the 2 years requirement.  I then used it for rental and sold it last December. Because I am in the military, I can suspend up to 10 years. My question is, how can I file this sale in Turbotax? A step-by-step guide would be useful.  Thank you.

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1 Reply
ColeenD3
Expert Alumni

Sales of Rental Property with 2 years of primary residence

Simply described, "nonqualified use" means any use other than as a principal residence after December 31, 2008. So, for example, use as a second home, vacation home or rental is considered "nonqualified use" beginning in 2009 or later. However, "nonqualified use" does not apply to time that falls into one of the following categories:

 

1. Periods of time after its use as a principal residence. 
2. Temporary absences due to a change in employment, health or unforeseen circumstances.
3. Any period (not to exceed 10 years) during which you or your spouse (if married) is serving on qualified official extended duty as a member of the uniformed services, the Foreign Service, the intelligence community, or as an employee or volunteer of the Peace Corps.

 

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on
  • Scroll down to Less Common Income
  • On Sale of Home (gain or loss), click the start or update button

 

1) Under Time you Lived In Your Home, answer No.

2) Did You Use This Home for Anything Other Than Your Primary Home? No

3) Another Home Sale? No

4) Reason for Sale. Other reasons

5) Other Reasons for Sale. Military

 

 

 

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