My LLC acquired land in 2021, commenced construction of a new home and sold it in 2022. How should this be reflected in TurboTax without recognizing any depreciation?

[crimdeller77]

The house was completed and sold on the same date.  TurboTax does not appear to be set up to account for this properly.

[GeorgeM777]

That depends.  Was the land/home an investment property?  If an investment property, then you could report the sale as a second home as follows:

1. Open your TurboTax account > Wages & Income 
2. Scroll to Investment and Savings > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other > Start or Update
3. Select the type of sale.  If you have already entered investment sales, then select Add investments. 
4. Enter the details of the property sold - Select Second Home from the dropdown, and continue to enter your information.
5. Continue to finish your sale. 

The gain from the sale will be fully taxable because a second home is not eligible for the home sale exclusion. Whether you specifically select Second Home is not relevant for the tax return itself.

If you are in a business, the purpose of which is to buy land, construct houses, and then sell houses for a profit, then the facts about the sale of this home (i.e., original cost, repairs and upgrades, sales proceeds) would be entered on a Schedule C, Profit or Loss From Business.  This type of gain would be characterized as ordinary income.

@crimdeller77

[crimdeller77]

Yes, through phone support.