How to enter previous home office deduction when house is sold

[dandor1]

I sold my house in 2024. We are well under the $500,000 joint allowance for capital gains. My wife  in prior years had claimed home office deductions. We stopped using home office in 2019. Do I need to report these prior deductions, and if so, what TT version do I need.

[DoninGA]

The depreciation has to be recaptured when you sell the home.  You will owe capital gains taxes on the recaptured depreciation.

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported. You will need the online TurboTax Premium edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button

Or enter sale of home in the Search box located in the upper right of the program screen. Click on Jump to sale of home

[dandor1]

Thanks so much for your reply! I did not have a gain anywhere close to the exclusion amount, and did not receive a 1099-S. Do I still need to recapture the depreciation. I have previously been using the Deluxe download version. Will that work if I need to recapture the depreciation, or do I need to upgrade to the download version of Home and Business? I have not claimed the home office deduction since 2019. Thanks so much for your help!

[DoninGA]

If you reported on your prior year tax returns the home office depreciation, it must be recaptured when the home is sold.  So you need to indicate in the program that you must report the sale.

If you are using the TurboTax online editions then you must use the Premium edition which supports Schedule D and Form 8949 for capital gains, whereas the Deluxe online edition does not support this.

If you are using the TurboTax desktop editions installed on a personal computer then any of the editions can be used.

[dandor1]

Thanks very much for your help!