You should report the sale of rental property. You must report the sale on the Federal return accurately then it should flow to Oklahoma. You will need to delete the sale of Business property on the Federal return then enter sale of rental property. The interview questions regarding the sale will accurately reflect the sale. When you enter accurately on the Federal return, it should flow to the state.
First, let's delete the sale of Business Asset on the Federal.
- Open or continue your return, search for sale of business property (use this exact phrase; copy/paste if necessary) and then select the Jump to link at the top of your search results.
- On the Any Other Property Sales? screen, make sure the first checkbox is checked and Continue to the next screen.
- The next screen, Sale of Business or Rental Property, should display Edit and Delete buttons next to the property in question.
- Select the appropriate button and follow the onscreen instructions to either edit or delete the 4797.
Now enter the sale of the rental property. Be careful to answer the questions properly because, if you only rented the property for 1 year you may not have to report a gain because there is an allowable exclusion for primary residence.
You may qualify to exclude up to $250,000 of that gain for individuals and up to $500,000 if you file a joint return. To qualify for that exclusion, you must meet the ownership test and the use test.
The 2-out-of-five-year rule is a rule that states that you must have lived in your home for a minimum of two out of the last five years before the date of sale. However, these two years don’t have to be consecutive and you don’t have to live there on the date of the sale. You can exclude this amount each time you sell your home, but you can only claim this exclusion once every two years.
It appears that Oklahoma has the same exclusion of capital gains tax on the sale of your primary home.
Use this link for more information about the sale of primary home: Sale of Home - IRS
Now, if you still need to report the sale of Rental Property, please follow these steps:
- With your return open in TurboTax, search for rentals and then select the Jump to link in the search result.
- Answer Yes to the question Did you have any income from rentals or royalties?
- When you get to What are you here to report? select Rental property and fill out the description, address, and owner.
- When you hit Tell us about your situation this year check the Sold box along with any other boxes that may apply.
- Continue following the onscreen prompts to enter info about your rental property. Eventually, you'll get to the Review your rental property info screen. You can report the sale in the Expenses/Assets (Depreciation) section, along with any other pertinent info (like income and expenses)
Tip: Take your time and pay close attention. There's a lot of info and it's easy to miss if you're in a hurry.
.
@GB38
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
