How to account for homeowner capital gains exclusion for a rental property on Freetaxusa?

drfrankenstein Member Posts: 3 Newcomer

We sold a property that qualifies for a $250k capital gains tax exclusion. This property was a home for several years, after which it became a rental property.

  1. We have tracked the property's depreciation while we rented it, and we know that up to 25% of this depreciation will be recaptured.
  2. The property sold in 2023 and the homeowner tax exclusion should still apply.

However, I do not see a way to enter the sale of this rental property that also accounts for the homeowner tax exclusion on Freetaxusa. Have I missed it? Could you advise? Thanks.

Best Answer

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 93
    Answer ✓

    Unfortunately, our software does not support this exclusion when a home has been used as both a personal residence and also as a rental property. We do hope to be able to support the partial exclusion in future tax years, but for 2023 and previous tax years, we don't. I'm sorry for the inconvenience.