Sold vacation home in Florida , some rental involved

[Norsky]

We bought property in Florida in 2001 for future retirement. We put a double wide on the property and rented it for 3-4 years. Then we started vacationing there 2 weeks a year and only rented for short periods, Many years not at all. The last ten years we stopped renting it at all. There was some depreciation involved from when we rented it. The cost of developing the property and putting the mobile on the property was only about 100 thousand dollars and we sold for 230 thousand.  Since we initially did some renting, I assume we have to call it a rental vacation home.  We owned it for about 22 years.  I have always used Turbo Tax in the past.  I am uncertain how to use it this year.  I need to know if I record it as a rental vacation home, although we converted it ten years before selling, Is it a simple matter of subtracting the cost of the land, the mobile and the improvements (well, septic, etc) from the sale price and pay taxes on that amount? any advice would be appreciated.

[ShirlynW]

Yes. you would record the rental as business property. Here is how to report the sale of rental property:

1. Open TurboTax.
2. Go to "Wages and Income".
3. Select "Rentals, Royalties, and Farm."
4. Click "Show More,"  Select Rental Properties and Royalties (Sch. E).
5. Select "Start."
6. Answer Yes to the question Did you have any income from rentals or royalties?
7. When you get to  What are you here to report? select Rental property and fill out the description, address and owner.
8. When you hit Tell us about your situation this year check the Sold box along with any other boxes that may apply.
9. Continue following the prompts to enter information about your rental property. You will get to the Review your rental property screen. You can report the sale in the Expenses/Assets (Depreciation) section, along with any other pertinent information.

[Norsky]

Thank you for the instructions. But when I followed them I got to a place where Turbotax asked if I had rented  or tried to rent my vacation home out in 2022. I answered no and I was instructed to delete it as a Rental.

I had converted it to personal use ten years ago. I sold it in April of 2022.   Am I still supposed to use

the "Rental and Royalty" section to show my sale and ignore the instruction to delete it as a rental??

[RobertB4444]

You need to enter this as the sale of your home, not your rental home.  

Go all the way down to 'Less Common Income' and then 'Sale of Home'.  You'll follow the steps entering all of the details of the sale.  

Then it will ask if you ever used it for anything other than your primary residence and you will answer 'yes'.  Then it will walk you through the steps to enter the rental information from ten years ago.  

That information will be taken into consideration when figuring the gain that is excluded from your taxes.

@Norsky 

[Norsky]

There seems to be one little glitch in TurboTax.

I was asked to indicate whether I had tried to rent the property out in 2022. When I

answered that question truthfully (No, I did not make any attempt to rent it out in 2022) I do not get any further

in the process. So I guess the solution is to not answer the question about whether I tried to rent the

property out in 2022.

Thank you for your help

[Norsky]

Less Common Income section told me I had to go to the investment section, where I was able to enter everything but the depreciation.

[Norsky]

I was able to get through the depreciation section. There was a not saying that I should not fail to 

enter the sale information, however there was no place (that I found) to enter the sale

information. 

Using the other option offered to me, I tried entering the information under the investment section

(selling your home) and that worked fine, except it never asks for the depreciation information.

[Norsky]

I can not enter my vacation home in the section on Rentals and Royalties. I get to a

question that asked if I had tried to rent the property in 2022. When I answer no,

it tells me to delete it as a rental property because it was not rented in 2022. Then

(in spite of the fact that I had checked the box indication I had sold the property in

2022, the message tells me to save the information from the last year it was rented and

shuts me down.

I can enter the property in the Investment section and enter all the information except

for the depreciation.

There is no way I can use Turbotax for showing the sale.

HELP

[PatriciaV]

Since this was the sale of a vacation home (and was never your primary residence), you can report this as the Sale of Business Property under Business Items. The entry screen for this type of sale allows you to enter Depreciation taken for the property.

You are correct that TurboTax will remove the rental property info if you say you didn't rent it at all during the year. Once you have reported the sale, you can complete this section to report you no longer own the rental property.

@Norsky