topic When do I report capital gains and which version of turbo tax in Get your taxes done using TurboTax

When do I report capital gains and which version of turbo tax

mijstern1 — Thu, 06 Jun 2019 14:59:00 GMT

It's hard to tell what your question is without knowing m...

MichaelDC — Thu, 06 Jun 2019 14:59:02 GMT

It's hard to tell what your question is without knowing more about your situtation. A capital gain is what the tax law calls the profit you receive when you sell a capital asset, which is property such as stocks, bonds, mutual fund shares and real estate. This does not include your primary residence. Special rules apply to those sales.

You'll use TurboTax Premier to report capital gains and losses as described above.

If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.

https://ttlc.intuit.com/replies/5209280

Capital Gains--sale of house

Alvin-Michael — Sun, 07 Mar 2021 17:16:48 GMT

Where in Turbotax Delux do I enter information on the costs (improvements, etc.) tat can reduce the cap gains on the sale of my house? In the income segment the system says this is possible but doesn't provide a way to do this.

Re: When do I report capital gains and which version of turbo tax

JotikaT2 — Sun, 07 Mar 2021 17:48:56 GMT

The input is made under the Federal section of the program as follows:

Select Income & Expenses
Scroll down to see All Income
Select Less Common Income
Select Sale of Home
Proceed to enter the info as prompted
You will see a screen titled Sales Information. You will enter your selling price and sales expenses here.
The next screen will say Tell Us About the Purchase of Your Home. You will enter the improvements in the cost basis input field.

Also be aware you may not have to report anything if your gain is less than $250,000. See the following link for more information on the exclusion and if you would qualify.

Sale of a home exclusion

@Alvin-Michael

Re: It's hard to tell what your question is without knowing m...

DiddlyD — Tue, 18 May 2021 23:32:15 GMT

I understand what you said but I think it's to broad of a statement because selling of your home residence can incur capital gains if it doesn't fit into the rules that exempt it. The problem I'm having is the property sold was my home for many years prior before converting to a rental property. Realistically, probably better to sell your home outright to get the exemption of capital gains and then invest in a rental property. My situation was a forced one due to 2008 mess but I don't advise doing it just so you don't lose the capital gains exemption on your personal residence if you didn't live in it 2 out of the last 5 years prior to the sale. Now I'm caught with a sale that encompasses deductions during owner occupied periods vs when it was a rental to report the capital gains from the sale. I don't see any Turbo Tax program so far that handles this well and support is telling me to enter things in the rental depreciation that are not properly reported there.

Re: It's hard to tell what your question is without knowing m...

DiddlyD — Tue, 18 May 2021 23:41:48 GMT

Besides, anything I add to depreciation schedule will cause some depreciation to be taken on the current return that will reduce my normal income taxes at a 15% tax rate but it will cause a recapture at 25% and ultimately increase my basis/capital gains amount; not exactly ideal!

Re: Capital Gains--sale of house

abryan196 — Wed, 13 Oct 2021 01:00:00 GMT

which version of turbotax is needed to report capital gains on sale of non prmary residence home

Re: Capital Gains--sale of house

xmasbaby0 — Wed, 13 Oct 2021 01:35:16 GMT

@abryan196 You need Premier if you are using online TurboTax. If you use desktop (CD/download) then you can use any version.

Re: When do I report capital gains and which version of turbo tax

Sandyjb555 — Thu, 18 Nov 2021 18:35:30 GMT

For the Capital Gains answer you gave (with photo)

Sale Date and selling price are easy to answer, but what does the "sales expenses" line mean? Like what qualifies under this?

Re: When do I report capital gains and which version of turbo tax

Texas Roger — Thu, 18 Nov 2021 19:43:06 GMT

You are allowed to deduct from the sales price almost any type of selling expenses, provided that they don't physically affect the property. Such expenses may include:

advertising
appraisal fees
attorney fees
closing fees
document preparation fees
escrow fees
mortgage satisfaction fees
notary fees
points paid by seller to obtain financing for buyer
real estate broker's commission
recording fees (if paid by the seller)
costs of removing title clouds
settlement fees
title search fees, and
transfer or stamp taxes charged by city, county, or state governments.

Most of these costs will be listed in the closing statement prepared by the escrow, bank or other financial institution, (or attorney, in some states) when you sell your house.

Re: When do I report capital gains and which version of turbo tax

Sandyjb555 — Thu, 18 Nov 2021 20:55:01 GMT

Thank you for your kindness and wonderful help!!

Re: When do I report capital gains and which version of turbo tax

MikeH17 — Fri, 14 Oct 2022 20:40:00 GMT

@Texas Roger I bought a rental 4 years ago for $103,000 and that year put $42,000 into fixing it up. I then rented it out and this year I sold the property for $260,000. How do I add the costs basis and where do I enter that number?

Do I put $145,000 in the "Cost" field for Depreciation or do I put $103,000 there and the $42,000 somewhere else?

Do I split that amount between the property & the land?

I'm using laptop Home & Business.