We bought a home in 2006, rented a room for 18 mos in 2006 and 2 mos in 2018 our daughter lived in the rest. Is the sale a business sale or a sale of a second home?

kmtowler — Thu, 06 Jun 2019 09:13:13 GMT

We never lived in the townhouse, our daughter lived in it the entire time. We rented it from 10/2006 to 5/2008 then again for a little over 2 months in 2018 before we sold it in July.

It's the sale of a 2nd home. The business use was inciden...

Hal_Al — Thu, 06 Jun 2019 09:13:15 GMT

It's the sale of a 2nd home. The business use was incidental. If you filed a Schedule E for tax years 2006-2008 and claimed depreciation and/or a loss** on Schedule E, then you will have to claim the "depreciation recapture". Depreciation recapture is a special category long term capital gain, taxed at ordinary income rates.

When you enter the sale, as the sale of a 2nd home, TurboTax will ask about prior depreciation. To enter the sale, type> 1099-S <in the find box.

** If you did not claim depreciation, but claimed a rental loss on Schedule E, you are still required to recapture the depreciation "allowable".

topic We bought a home in 2006, rented a room for 18 mos in 2006 and 2 mos in 2018 our daughter lived in the rest. Is the sale a business sale or a sale of a second home? in Deductions & credits

We bought a home in 2006, rented a room for 18 mos in 2006 and 2 mos in 2018 our daughter lived in the rest. Is the sale a business sale or a sale of a second home?

It's the sale of a 2nd home. The business use was inciden...