topic Turbo Tax not capable of handling sale of rental property for a primary home converted to a rental? in Investors & landlords

Turbo Tax not capable of handling sale of rental property for a primary home converted to a rental?

ture1945 — Tue, 24 Feb 2026 07:19:03 GMT

Hi, I'm trying to record the sale of a rental property, but having trouble. As background, I bought a primary home in 2011 and lived in it for 4 years. I moved out in 2015 and converted it to a rental property from 2015-2022. I sold it in July 2022. I'm using TT live online premium edition. When I get to the "Special Handling Required" section, it asks if any of these conditions apply. I have to answer YES to "The business use percentage of this asset varied during the years you owned the asset." On the "Learn more" tab, it states "If the business use percentage varied over the life of the asset, the program cannot automatically compute the sale information." When I previously clicked yes it takes me back to the summary, with no opportunity to enter sales info. So, now what do I do? Is TurboTax not capable of handling this situation? Thanks.

Re: Turbo Tax not capable of handling sale of rental property for a primary home converted to a rental?

DoninGA — Sun, 24 Sep 2023 20:25:23 GMT

Since you have not lived in the home as your personal primary residence for at least two years in the 5 year period from the date of the sale, answer NO to the question for special handling. You are not eligible for the capital gain exclusion on the sale of the property.

Re: Turbo Tax not capable of handling sale of rental property for a primary home converted to a rental?

Anonymous_ — Sun, 24 Sep 2023 20:28:48 GMT

I agree with @DoninGA; the answer is NO there because the business use did NOT vary AFTER you converted it to rental use.

Re: Turbo Tax not capable of handling sale of rental property for a primary home converted to a rental?

ture1945 — Sun, 24 Sep 2023 22:01:36 GMT

Thank you for your quick reply. So this has to do with the capitol gains exclusion. I wish they had worded this better. TT makes it sound like they are asking if business use percentage varied during the entire time I owned it, not just after it was converted for business use.

Re: Turbo Tax not capable of handling sale of rental property for a primary home converted to a rental?

ture1945 — Sun, 24 Sep 2023 22:03:34 GMT

Thank you for responding quickly as well. I wish TT would have explained better that this refers to AFTER I converted it to rental use.