Hi, I sold my property last year that I rented on Airbnb. It was never a primary residence for me. Do I input this property as a business property sale or a stock sale?

[Monish_S]

I used this property partially as personal, so if I were to put it under the business property sale would I then calculate only the business portion usage of this property?

[Cynthiad66]

Yes.  Follow the steps below to enter the information about the property so that TurboTax can make the calculations for you.  It is very tedious so take your time to answer the questions.

Click on the link for steps on How to Report the Sale of Rental Property

Airbnb hosts who offer their property for short-term rental are subject to the income tax rules for residential rental property.

[Monish_S]

Hi Cynthia,

I'm using the PC Version of TurboTax and am not sure where this option is located. I tried to go through the Sale of Property/Depreciation option but it brought it in as just depreciation instead of a sale.  

[Carl]

Here's the guidance for reporting the sale of rental property in the desktop version of TurboTax.

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2021". Select it. After you select the "I sold or otherwise disposed of this property in 2021" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even if it's zero. Then you MUST work through the "Sale of Property/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1 on some assets. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1 on some assets.

Basically, when working through an asset you select the option for "I stopped using this asset in 2021" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.

[AnonymousUser2025Only]

What if the assets (furnishings, fixtures, equipment) were sold WITH the rental property as part of the sale price?  Since I did not receive additional moneys for the assets. The house sale price included all items inside (turn-key). Do I report each asset sold at a gain or a loss? 

[PatriciaV]

The only assets you need to allocate sales proceeds to are those that were depreciated separately from the residence. Usually these are improvements or major appliances. If you never reported these as separate assets, then you can report the sale of the entire property as one amount.

If you did report the assets separately, follow the previous instructions from Carl.