Turbotax for sale of rental property

Close. share. save hide report. Enter the number of days in the …Calculating the gain or loss on a sale of rental property is a very simple calculation, and understanding it will result in you saving thousands of dollars in taxes. From that point the software should take it to all the appropriate places that would follow from there. This is where using Turbo Tax or any DYI software really falls apart. New comments cannot be posted and If you are tired of the ups and downs of the stock market, the real estate market can seem like a safe haven. You need to declare rentalUsing Turbo Tax or any other tax software, the sale of rental property would first be entered on Form 4797. Part of the gain is taxed as a capital gain and might qualify for the maximum 20-percent rate on long-term gains, but the part that is related to depreciation is taxed at the higher tax rate of 25%. If you bought or built the property, the basis will be the purchase price or the cost of construction. Be sure to account for selling costs and improvements to reduce your gain. 100% Upvoted. If you acquired the property as a gift or by inheritance, your basis will be the fair market value on the date of acquisition, or the adjusted basis of the property in the hands of the person from whom you acquired it. Determine the original basis of the rental property. If you have losses from “passive activities” such as owning rental properties, typically you can only deduct those losses to offset other passive income sources, such as other rental properties. . Suppose you bought the property for $500,000 -- …Calculate the number of days throughout the year that the rental property was used for fair rental days and personal use days. Archived. Posted by. For example, if you earn $10,000 from one rental property and have an $8,000 loss on another, you can offset your $10,000 income with the $8,000 loss, for a net taxable rental income of $2,000. This thread is archived. There is also depreciation to consider, even if you haven't be taking it while the property was a rental. 10 months ago. Rental property sale on Turbo Tax. A knowledgeable CPA will save you more on your taxes than they costs and will avoid this sort of brain teaser with the tax code. If you made repairs to drainage system and they were truly repairs, expenses should be considered a write off against rental income. u/sternmyl. When purchasing a rental property, it is important to understand the income tax implications. 1. Depreciation recapture can cause a significant tax impact if you sell a residential rental property. Rental property sale on Turbo Tax. The Canada Revenue Agency treats pure rental properties differently than your principal residence. On the other hand, if the expenses were incurred to improve the property, these expenses would be added to the cost of the building, and you can claim them against the future sale price (and also claim capital cost allowance on these expenses). What do I include in the Asset Sales Price and Asset Sales Expenses for sale of rental apartment? Do I include the mortgage balance in the Asset Sales Expenses? comment