How to report the sale of rental property I lived in?

Select “Yes” to Home Sale under the Sale of Assets section under Rental Summary Screen. To enter this transaction in TurboTax, log into your tax return and type “rental (schedule e)” in the search bar then select “jump to rental (schedule e)”, TurboTax will guide you in entering this information

Can a property be used as a rental after the date of sale?

Answer. If you used and owned the property as your principal residence for an aggregated 2 years out of the 5-year period ending on the date of sale, you have met the ownership and use tests for the exclusion. This is true even though the property was used as rental property for the 3 years before the date of the sale.

When to sell a rental that was once a primary residence?

One of the first things to determine when selling a rental property that was once your primary residence is whether there was a gain or a loss according to the Internal Revenue Code Section 121.

How is the sale of a house used as a rental?

In this case, the selling price, selling expenses, basis, and the allowable Section 121 exclusion must be apportioned between the home itself and the business or rental portion. Starting in Drake18, use the section Business or Rental Use of Home to enter the percentage of the property used for the business or rental.

What happens to depreciation when you sell a rental property?

What Happens to Real Estate Depreciation When You Sell the Property? When you sell your rental property, you typically have to pay a depreciation recapture tax if you sell the property for more than its depreciated value. The depreciation recapture tax is typically 20 percent plus the state income tax on the depreciation amount that you claimed.

Can a rental property still be shown as an investment?

Yes, you would continue to show it as a rental (investment) if you want to deduct ordinary and necessary expenses plus depreciation. On the ‘Was This Property rented for All of 2015? ‘ screen, answer ‘ No, this property was not rented all year’.

How long can you rent a house before selling it?

You could live in it for two years and then rent it for three years and then sell it (so long as it is sold within the five year mark from when you first lived in it as your primary residence). See this IRS link for more information on the exclusion: If you rented the home before selling, then enter your home sale under the rental section.