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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13313
Experience:  15years with H & R Block. Divisional leader, Instructor
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You just helped me with the sale of a home that was rented

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You just helped me with the sale of a home that was rented prior to a sale...
I entered the info to turbo tax and the software is allocating the entire loss to form 4797 and from there to the 1040. In other words it is taking 100% of the loss as a business loss even though the rental period is 1/1/12-10/31/12 on ly and the house was purchased back in 2008

Robin D :

Hello and thank you for using Just Answer,
I figured it would that is why I advised about what to look for. Let me check and see if TurboTax offers any insight into theri progarm when this happens.

Robin D :

One sec, please

Customer:

ok

Robin D :

You can try to enter through the Forms (not sure about your version but look at the top of the csreen and see if you can enter the actual forms that way).

Robin D :

Then you would be able to edit and override the amount.

Customer:

I could. But there has to be a reason that it is allocating the entire loss after depreciation as a business loss / giving me the write-off. I mean this is fundamentaly incorrect

Robin D :

It is giving you the total loss because the program is not aware that you used the property for personal use.

Customer:

So what if I let the business portion of the loss go and report it as a personal sale. Do you see an issue with that?

Robin D :

You must report the rental income you had in 2012. Disposition of the property is also required. Of course on a loss you would not be gaining a tax advantage but you would be fore going your loss on the sale.

Customer:

I'll report the profit and loss on sch e. I'll than dispose of the property as a personal property or on sch d. I have stock gains on d and I'll get an offset on account of the property. I could live with that. Do you see a problem with that?

Robin D :

Not in any way that would mean you would owe the IRS. I can not just say no because I am aware that you have at least a small portion of loss that you are entitled to.
I looked all through TT and could not find any reference on navigation that they posted for overriding.

Customer:

In essence the IRS will benefit from this approach

Robin D :

Yes

Customer:

I'll try to work with the software again and will use this a s a plan B

Robin D :

I wish I were a TT expert but I do not use the program.

Customer:

Thank you again!

Robin D :

You are welcome

Robin D. and other Tax Specialists are ready to help you