topic I sold my rental property in 2020 in Investors & landlords

I sold my rental property in 2020

john-evans2011 — Fri, 12 Mar 2021 02:04:27 GMT

Re: I sold my rental property in 2020

HelenC12 — Fri, 12 Mar 2021 18:51:15 GMT

If you sold your rental in 2020, see I sold my rental property. How do I report that?

You may have to pay 25% on your Depreciation Recapture. When you sell a rental, in addition to capital gains, you may have Depreciation Recapture. If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if otherwise nontaxable) as ordinary income.

You depreciated the building and other assets in years past.
You received the benefit of a depreciation deduction that offset ordinary income tax rates.
The government is not going to grant the most favorable capital gains rates on the portion of the gain relating to these prior depreciation deductions.

Re: I sold my rental property in 2020

kuz214 — Fri, 12 Mar 2021 19:56:28 GMT

I also sold rental property in 2020. I owner-financed, and would like to report the income as installment sales.

When I get to the "Rental Properties and Royalties" section of Turbo Tax, and the question comes up - Do Any of These Situations Apply to this Property?... The "Learn More" link specifies NOT to check the "sold" box until the final year of payment, if the disposition was reported using the installment method.

But later, in the Installment Sale section, after entering Principal and Interest received, Type of Business Property, and confirming that it was Depreciable Property... I get to the question "Have you reported the sale of this asset in your business or rental activity?" When I answer "No" (because I was previously told not to check "sold" until the final year), I get the message telling me to Enter the Asset Sale and then come back.

Please help clear up this apparent contradiction.

Re: I sold my rental property in 2020

ColeenD3 — Tue, 16 Mar 2021 14:39:36 GMT

Enter the sale and go through the entire interview. You will encounter the screenshot below. Answer yes to the question and continue on.

Re: I sold my rental property in 2020

kuz214 — Tue, 16 Mar 2021 20:33:22 GMT

Thanks Coleen,

I thought it might be better to re-ask my question in its own post. And i added screen shots too. Please review if you can:

Rental property sold using installment sales (intuit.com)

Re: I sold my rental property in 2020

ColeenD3 — Tue, 16 Mar 2021 22:47:54 GMT

Yes, the screenshot from ThomasM125 is what you want. Ignore the Learn More box.