TurboTax calculated capital gain of my sold rental property without subtracting the purchase price!

[HelenaX]

I sold a rental property in 2020. I am trying to report the sales under the "Wages & Income > Rental Properties and Royalties" section. I indicated that the property was sold in 2020 and entered the closing date. I also provided the purchase price as the cost basis. However, TT calculated the Capital Gain as:

           Capital Gain = Sales Price - Closing Cost at Sale

It didn't include the PURCHASE price at all even though the information has been entered!

I went through the form again and again and couldn't figure out why. 

Could anyone please tell me if I have missed anything? how I can get TT to include the purchase price when calculating the capital gain?

[HelenC12]

Your rental building is an asset. To enter the sales information, edit each rental asset. 

1. Type rentals in the search bar and click on Jump to rentals.
2. On the Your 2020 rentals and royalties summary screen, edit the rental.
3. On the Here's XXX rental property info screen, scroll down to Improvements, furnishing, and other assets and Edit.
4. On the Your improvements, furnishings, and other assets screen, select an asset and click on the pencil icon on the right side.
5. On the Do you want to go directly to your asset summary? screen, select Yes, I want to go to my asset summary.
6. On the Your Property Assets screen, Edit the asset.
7. On the Describe This Asset screen, select an asset category and continue.
8. On the Tell Us a Little More About Your Rental Asset screen, select the category and Continue.
9. On the Tell Us About This Rental Asset screen, confirm the information and Continue.
10. On the Tell Us More About This Renal Asset screen, select The item was sold, retired, stolen, destroyed, disposed of, converted to personal use, traded in, or given away and enter the date sold.
11. Answer the next question on the page and Continue. 
12. Continue with the onscreen interview. On the Enter Asset Sale Information screen, enter the Sales Price and Sales Expenses.
13. Continue with the onscreen interview until complete.
14. Repeat this process for each asset. 

[HelenaX]

@HelenC12 Thank you so much for answering my question during the weekend! Really appreciate it!

I am using Deluxe and seems to have different views. However, I was able to find most of the places you pointed me to on Deluxe. 

I feel like I did enter all of the necessary information. However, TT calculated the capital gain simply using Sales Price - Sales Cost. 

I have pasted the screen shots below. 

Basically the town house was purchase in Mar 2008, we lived there for a few years and rented out from Dec 2013 till Dec 2019. We sold the house in Jan 2020. We have no rental income or rental expense in 2020, it was on the market for sale.

I entered the sales information at below place under Wages & Income > Rental Properties and Royalties:

I entered the Purchase Price and Purchase Date (Mar 2008) here:

Indicated the House was sold in Jan 2020 and date starting to rent the house (Dec 2013)

I entered the Accum. Depr taken during rental periods:

I entered Sales Price and Sales Expense:

TT calcuated Captial Gain = Sales Price - Sales Expense (179,000 = 180,00 - 1,000) , without considering the purchase price or accumulated depreciation:

[HelenaX]

Here is the last screen shot. I couldn't paste it in previous message.

[HelenaX]

Could anyone please help here? Trying to file the return today. Thanks!!

[DaveF1006]

What is the amount of capital gain that it says that you owe?

[HelenaX · Accepted solution]

Sorry I didn't see last message. Really appreciate your trying to help.

I called TT and got a really amazing expert. Basically it was the yellow highlighted area that was causing the issue. I entered 1% as I didn't rent out the unit at all in 2020. It was on the market for sale. However, somehow that percentage messed up my previous depreciation or something which I can't explain. So you just need to leave it blank.

I wish the question was clearer!