Question

sale of rental property

Forum|Forum|2 years ago
March 25, 2024
1 reply
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I sold rental property in 12/23 after renting it for first 9 months of 2023. reported rents and expenses in TT Premier like previous years. how do I report the sale so the capital gains and depreciation recovery taxes are properly calculated? How do I verify on Sch E or Sch C.

T

TomK2023

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

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 income from rentals or royalties?
Answer Let's see if you're a real estate professional and Continue.
When you get to What are you here to report? select Rental property and Continue.
Review Here’s what to expect next and Continue.
We'll start with some basic info on your rental - fill in details, property nickname, address, etc.
Answer Who owns (rental property)? and Continue.
Select proper answer for What type of rental is (rental property)? and Continue.
When you hit Tell us about your situation this year check the Sold or disposed of property box along with any other boxes that may apply and Continue.
Continue following the onscreen prompts to enter info about your rental property.
Eventually, you'll get to the Review your rental property info screen. On the following screens, we'll ask you to enter all the info we need about your rental property.
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.

Terminology Tips

For more information, see TurboTax FAQ: I sold my rental property. How do I report that?

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K

kenneth53Author

I followed steps as outlined.

I dont see where I enter my costs of the sale. I was able to enter all income (rent) and op expenses for the period house was rented. When I look at the various worksheets I see line 21 of form 4797 indicates cost or other basis plus expense of sale, but I never entered any amount so I dont know where is comes from?

I also dont see where depreciation recovery is caculated

M

mglauner

Indicate in the PROPERTY PROFILE section that you sold the property, and the date.

Enter any 2023 Income/Expenses in that section.

In the ASSETS/DEPRECIATION section, Edit the property and indicate it was sold and the date. Continuing through the screens in this section, you will see one that has the Depreciation Taken amount filled in. This amount is subtracted from the Cost Basis you entered when you set up the rental (that's depreciation recapture). That amount (plus sales expenses) is what you see on Line 21 of Form 4797.

Keep going and you'll come to a screen where you can enter Sales Expenses.

Once the Depreciation Taken is Subtracted from your original Cost Basis, and the Sales Expenses are Added to that amount, that's your Cost Basis that is subtracted from Sales Proceeds to calculate Gain/Loss.