If the real estate was investment property, enter it as the sale of a capital asset.
To
enter this as a capital asset sale in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here) and type
"investment income (gains and losses)" in the search bar then select
"jump to investment income (gains and losses)". TurboTax will guide
you in entering this information (see step 6 below)
Alternatively, To
enter this transaction in TurboTax Online or Desktop, please follow these
steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Wages &
Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose
what I work on” (Jump to full list)
- Scroll down the screen until
to come to the section “Investment Income”
- Choose “Stocks, Mutual Funds,
Bonds, Other” and select “start’ (or “update” is you have already worked
on this section)
- The first screen will ask if
you sold any investments during the current tax year (This includes any
asset held as an investment property so answer “yes” to this question)
- Since you did not receive a
1099-B, answer “no” to the 1099-B question
- Choose type of investment you
sold - select everything else
- Some basic information:
- Description –
Usually the address of the property sold
- Sales Proceeds – Your net
proceeds from the sale (usually reported on 1099-S)
- Date Sold – Date you sold
the property (on 1099-S)
- Tell us how you acquired the
property - purchased
- Enter the your cost basis-
cost plus capital improvements less any depreciation deducted or allowable
as a deduction less any casualty losses take on the property.
- Date acquired (Just
remember that the date acquired should be more than a year before the
date sold in order for the sale to get long term capital gains treatment
and the lower capital gains rate)
- If you had a loss, on the
question of "Did you use this property for business or
investment?" If the property was not used for any personal use,
you will answer that this was for investment. Otherwise, you will not be
able to deduct the capital loss of a personal use capital asset.
Click these links
for further information about reporting
the sale of a capital asset or Capital Gains and Losses