I sold my rental property. How do I report that?
- With your return open in TurboTax, search for rentals and then select the Jump to link in the search result.
- Answer Yes to the question Did you have any rental or royalty income and expenses?
- When you get to Is this a rental property or royalty? select Rental property and fill out the description, address, and owner.
- When you hit Do any of these situations apply to this property? check the Sold box along with any other boxes that may apply.
- Continue following the onscreen prompts to enter info about your rental property. Eventually you'll get to the Rental Summary screen. You can report the sale in the Sale of Property/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.
- Sales Price – If you received a Form 1099-S, look in Box 2 (Gross Proceeds), which will generally be your contract sales price. You can also use the gross proceeds amount from your settlement closing statement.
- Sales Expenses for selling your property include sales commissions, advertising, broker and legal fees, and transfer taxes.
- Basis is your rental's original purchase price plus settlement costs at time of purchase (abstract, legal, and recording fees, surveys, transfer taxes, owner's title insurance).
- Adjusted basis is your basis plus improvements and sales expenses minus depreciation.