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posted Apr 26, 2021 2:36:49 PM

Sale of vacation rental

My wife and I have owned a vacation home in the mountains since 1995. Business and personal use decreased over the years and we finally sold in April 2020. In 2020 we had no personal use but did have several thousand dollars of income. Does this become subject to special handling? I have not seen any place to  calculate sales price, depreciation, carry over expenses , etc.  Thanks. Bgator

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2 Replies
Level 2
Apr 26, 2021 2:57:32 PM

Go to the Tab 'Business" and then to Rentals. Let the program walk you through it.

Expert Alumni
Apr 26, 2021 4:51:59 PM

  1. With your return open in TurboTax, search for rentals and then select the Jump to link in the search result.
  2. Answer Yes to the question Did you have any income from rentals or royalties?
  3. When you get to What are you here to report? select Rental property and fill out the description, address, and owner.
  4. When you hit Tell us about your situation this year check the Sold box along with any other boxes that may apply.
  5. Continue following the onscreen prompts to enter info about your rental property. Eventually, you'll get to the Review your rental property info screen. You can report the sale in the Expenses/Assets (Depreciation) section, along with any other pertinent info (like income and expenses)

Tip: Take your time and pay close attention. There's a lot of info and it's easy to miss if you're in a hurry.

 

Of course, these instructions assume you have properly set up your rental property in TurboTax, and have been taking depreciation expense since you put the property in service.