topic how to report the sale of rental property? in Business & farm

how to report the sale of rental property?

Tax2019Pay — Mon, 23 Feb 2026 13:08:54 GMT

Re: how to report the sale of rental property?

Tax2019Pay — Tue, 07 Feb 2023 05:36:12 GMT

Re: how to report the sale of rental property?

JulieS — Tue, 07 Feb 2023 14:02:07 GMT

Yes, you should enter the sale of the condo in the asset section of the rental property section. Do not enter the sale in the Sale of Home section in TurboTax.

Since you rented the property out for part of 2022, report your rental income and expenses.

While you are in the rental section:

In the Asset section of the rental interview, select Edit for the condo.
On the screen, Tell Us More About This Rental Asset, select This asset was sold, retired, stolen, destroyed, etc.
In the date box that pops up, enter the date of the sale.
Continue through the section.
You will be asked about depreciation, the sale price, the expenses of sale and some special situations that may apply, including whether the property was your home at some point.
If you have other assets for this property, report them disposed of in the same way.

Depending on the amount of time you rented the condo to others, you may be able to exclude some of the gain on the basis that it was your home.

You will need your 1099-S and the HUD-1, or other closing statement from the sale of the property, to report your gain or loss.

Re: how to report the sale of rental property?

Tax2019Pay — Wed, 22 Feb 2023 03:03:17 GMT

Re: how to report the sale of rental property?

GeorgeM777 — Tue, 07 Feb 2023 23:11:15 GMT

There likely would be a difference. For your rental, there should have been a depreciation expense each year and upon selling the rental property, you would have to account for that prior depreciation in the form of depreciation recapture. You are correct in that the sale of the rental property is the sale of a capital asset and therefore is subject to the capital gain/loss rules.

In contrast, and as mentioned in the prior posts, the sale of your home may qualify for some capital gain exclusion. There is no such capital gain exclusion for a rental property. Additionally, if there is a loss on the sale of your home, there would be no deduction for that loss because it is considered a personal loss. A loss on the sale of your rental, as mentioned above, would be deductible.

@Tax2019Pay

Re: how to report the sale of rental property?

Tax2019Pay — Sat, 11 Feb 2023 19:49:42 GMT