Selling Home

[pjengelhardt]

I've sold a home in Ohio that was my main home for 24 years but rented it for 8 years prior to selling it in 2019.  Do I treat this as selling a main home or selling a rental?  

Also, where do I enter improvements to reduce capital gains taxes?

[MinhT1]

As you have not lived in the home for more than 2 years in the 5 years preceding the sale, you do not qualify for the capital gain exclusion on the sale of your residence. The sale will be treated as sale of a rental home.

Improvements are added to the cost basis of the home, so will reduce your capital gains.

Please follow the instructions of this TurboTax Help topic on how to report the sale of a rental home.

[Critter]

Since you did not live in the home for 2 years of the 5 years prior to sale so you did not sell a personal residence ... you only sold a rental.   The sale will happen in the Sch E section only ...  you will sell off the assets. 

https://ttlc.intuit.com/questions/1933977-i-sold-my-rental-property-how-do-i-report-that?jump_to=ans...

[pjengelhardt]

Am I still able to list all of the upgrades along with cost to reduce capital gains?

[pjengelhardt]

Missed the second part, plus the link in the post doesn't go anywhere.

Also, do I list all of my upgrades as Assets or somewhere else?

[Critter]

1- link does work ... here is another ... https://ttlc.intuit.com/community/rental/help/i-sold-my-rental-property-how-do-i-report-that/00/2625...

2- you will sell off all the assets that should have been depreciated ... this may not be a return you want to try yourself so either upgrade to LIVE or seek a local tax professional.

3- if you have not been depreciating the property and improvements as required then RUN to a local tax pro to get this mess corrected ... the 3115 form you need is not for the faint of heart. 

[pjengelhardt]

I've taken the depreciation thru TurboTax each year I rented the property.

So It's not wise to use TurboTax this year?

[Critter]

You can try it yourself since you did take depreciation properly ... but go SLOW and READ all the words on all the screens ... ask for help if you get stuck and do not file until you are sure you have it right.  Upgrade to LIVE if you feel you are in over your head. 

[Mahmitt]

how do I enter the military exclusion in turbo tax that lets me extend time I’ve been away from my main home? There doesn’t seem to be an option/button that lets me enter official service with the military during the last 10 years. It’s stuck on the default “in the last 5 years have you lived there...”

thanks. M

[DMarkM1]

After you say you didn't meet the 24 month exclusion requirements TurboTax will ask about a reduced exclusion.  When it asks about reason for sale select "Other reasons."  The next page will show the "other reasons" and the top one should be "military..foreign service."  Select that button and the interview will then ask about the extension months.