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I sold my rental property. How do I report that?

by TurboTax•269• Updated a day ago

Follow these steps to report the sale of your rental property on your tax return:

  1. Open or continue your return.
  2. Navigate to the rentals section:
    • TurboTax Online/Mobile: Go to rentals.
    • TurboTax Desktop: Select Search Topics. Search for and select rentals.
  3. Answer Yes to the question Did you have any income from rentals or royalties?
  4. Follow the on-screen instructions. We'll ask you to report the sale when you get to 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.

  • 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, and owner's title insurance).
  • Adjusted basis is your basis plus improvements and sales expenses minus depreciation.

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