Question

Sale of rental house using TT for business.

Forum|Forum|1 year ago
March 26, 2025
1 reply
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Turbo tax for business 2024 is showing I owe taxes on the land portion of a house sale. The sale included the land. How do I get rid of that since the land was separated from the house for depreciation.

TurboTax Business Windows

DawnC

You need to allocate some of the proceeds to the land. The selling price should be prorated for each asset. Then enter that portion for each asset when you indicate they were sold or disposed of.

To give you an example, assume you sold the property for $100,000. If the land was worth $10,000, then the house sales price would be $90,000 and the land sales price would be $10,000. If you paid $5,000 in sale expenses (commission for the sales agent for instance), the house sales expenses would be $4,500 (90% of $5,000) and the land sales expenses would be $500.

You might also review information here.

And here is a detailed example from DianeW.

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F

FRSJRAuthor

The house w/land on which the house resides had a cost basis of 490K. It all sold for 525K. TT shows a correct long term capital gain. One form 8949 (I beleive) shows 200k for sale of land. The land was part of the sale for 525k. Why does it separate it and where does it get 200K?

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Vanessa A

You would have entered the value of the land at some point. The value of the land is asked when you enter the rental asset. The land value is not a calculation that TurboTax makes.