2024 Sale of Daughter's home we purchased

[Cinsi]

Need to know if TurboTax Premier will address the sale of home we purchased for sick daughter to live in until she died in Dec 2022.  It was supposed to be rented to her but at very low rental fees and every time from 2019 to 2022 when I tried to report it in annual TurboTax Premier it was denied as a true rental and I was to report income from it against expenses on detailed personal deductions form -- which would not then be reported as was below standard deduction allowance.  

So will TurboTax Premier 2024 be able to walk me through this property sale?

[Vanessa A]

Yes.  TurboTax can walk you through the sale of a home.  This would be entered in the investment section of TurboTax Premier.

You would enter the sale of the house by clicking the following:

1. Federal
2. Income
3. Show More next to Investment Income
4. Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) 
5. Select Other
6. Continue through and select second home for the type of investment
7. Answer how you obtained it
8. You will need to enter the selling price, dates and the cost basis   

Note, your navigation sequence may be slightly different.  You can also use the Jump to feature by entering investment sale in the search bar at the top of the screen. 

The reason you were denied as a true rental is because in order to claim it as a rental, you would have had to rent it to her at Fair Market Rent.  If you were renting to her at below market value, you cannot claim it as a rental as the IRS considers that to be personal use.  When it is personal use, you cannot deduct the normal expenses for a rental property, you can only deduct itemized interest and property taxes.