Will Turbo Tax allow me to enter a capital gains loss from the sale of real property? Where do I go to enter that information? JCB

[IreneS · Accepted solution]

Yes - It depends on the type of real property you sold.

Principal  Residence or Second Home

If the property is your main home or a second home, the loss is not deductible, so don't enter it in your return.

Rental Property

Since the property was a rental and you have prior depreciation, enter the property sale in the Rental Property section.  You will have to apportion the total sales price among the house and any assets that may have been entered separately (for example new roof, appliances, improvements).

To do this in the TurboTax Home & Business, please follow these steps:

1. Click on Business > Continue > I'll choose what I work on.
2. On the screen, Let's gather your business info, click Start/Update next to Rental Properties and Royalties (Sch E) 
3. On the Income from Rentals or Royalty Property You Own  screen, click Yes.
4. If you have already entered information about your rental (or transferred it from the previous year), you will come to the Rental and Royalty Summary screen.  Click on the Edit box next to the property. 
5. Continue through the screens, entering the requested information.
6. On the screen, Do Any of These Situations Apply to This Property? mark the box that you sold or disposed of the property in 2019.
7. When you come to the screen, Review Your [XX] Rental Summary click the Start/Update box next to Sale of Property/Depreciation. 
8. If you have assets entered already, on the screen, Do you want to go directly to your asset summary? mark the Yes radio button and click Continue.
9. Click Edit next to the property.
10. If you haven't yet entered any assets, continue through the screens to enter the house.
11. On the screen, Tell Us More About This Rental Asset,  mark the box that the item was sold and enter the date of the sale.  
12. The next screen allows you to enter or confirm your prior depreciation .
13. You will eventually come to a screen to enter the sales information.
14. Continue through the interview, entering the requested information.
15. You will be brought back to Your Property Assets.  If you have other assets related to this property, follow the same procedure with them by clicking Edit on an existing asset [or Add an Asset].

Land

A land sale is considered a sale of an investment.  To report this in TurboTax, please follow these steps:

1. Click on Federal > Wages & Income
2. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
3. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 20XX?  Click the Yes box.
4. Answer No on the screen, Did you get a 1099-B or brokerage statement…”
5. On the screen, Choose the type of investment you sold, mark the button for Land and click Continue. 
6. On the next screen, enter the land sale information.  Be sure to enter the net proceeds and mark whether income taxes were withheld or not. 
7. Continue through the screens, entering the requested information.

[Edited | 4/15/2020 | 9:21am PDT]

[JAG6042]

Which Turbo Tax 2020 program do I need tor this?

[JohnB5677]

Yes, You can enter this in the Investment Income section. 

However, you cannot take a loss on personal property such as cars, second homes, and other items used for personal use.  TurboTax will ask about any items withdrawn for personal use to exclude them from deductions.

Income & Expenses

1. Scroll to Stocks, Mutual Funds, Bonds, Other
2. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
3. On the OK, what type of investments did you sell? 
4. Continue from here

[Kathie-52]

This property was given to me through a "Will" and I sold the property.  How do I enter it on the tax form?

[LoganathanB]

• Open your tax return
• Go to Investment income under Wages and income
• Answer the questions about the type of investment
• Enter the cost and sale price, Date acquired, and date of sale

You will not be able to take a loss on personal property.

[Kathie-52]

Be Advised .... this is not my personal property.  This property was given to me through a Probate Matter.  The lady died and left me the house, so sold it.  I have my own home that I own.  

[Kathie-52]

Also ..... where do I enter the money that I gave to my Sep  Plan ?

[DawnC]

For your SEP plan contribution, see Where do I enter my SEP IRA contributions?   

For the home you inherited and then sold, you may have received a 1099-S that you will use to enter the sale.   Because these types of sales are considered investment sales, you need to enter this info in the investment section of TurboTax.    Select the product you’re using for the right instructions.    The basis of property inherited from a decedent is generally one of the following:

• The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
• The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.

Note: To report the sale of a second home, an inherited home, or land, you’ll have to use TurboTax Premier, TurboTax Self-Employed, or TurboTax Home & Business.

TurboTax Online

TurboTax CD/Download

@Kathie-52