We never lived in the townhouse, our daughter lived in it the entire time. We rented it from 10/2006 to 5/2008 then again for a little over 2 months in 2018 before we sold it in July.
You'll need to sign in or create an account to connect with an expert.
It's the sale of a 2nd home. The business use was incidental. If you filed a Schedule E for tax years 2006-2008 and claimed depreciation and/or a loss** on Schedule E, then you will have to claim the "depreciation recapture". Depreciation recapture is a special category long term capital gain, taxed at ordinary income rates.
When you enter the sale, as the sale of a 2nd home, TurboTax will ask about prior depreciation. To enter the sale, type> 1099-S <in the find box.
** If you did not claim depreciation, but claimed a rental loss on Schedule E, you are still required to recapture the depreciation "allowable".
It's the sale of a 2nd home. The business use was incidental. If you filed a Schedule E for tax years 2006-2008 and claimed depreciation and/or a loss** on Schedule E, then you will have to claim the "depreciation recapture". Depreciation recapture is a special category long term capital gain, taxed at ordinary income rates.
When you enter the sale, as the sale of a 2nd home, TurboTax will ask about prior depreciation. To enter the sale, type> 1099-S <in the find box.
** If you did not claim depreciation, but claimed a rental loss on Schedule E, you are still required to recapture the depreciation "allowable".
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
NS1
Level 3
ffirecracker
New Member
riald409
Level 1
PerpetuallyConfused
Level 2
PerpetuallyConfused
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.