Report capital gain on selling rental property - 50% shares

[SLaw1]

my wife and I sold a rental property in 2023 and need to report capital gains. I know only 50% of the capital gain will be taxable.

Question is we each owe 50% of the property.

Seems Turbo tax does not have an option to report that. If we each enter the full value of the capital gain, then the CG tax will be double.

How does turbo tax handle this?

thanks

[TurboTaxGinette]

Please see our TurboTax FAQ to guide you with this: How do I enter rental property income if my spouse and I are co-owners?

Thank you for choosing TurboTax.

[SLaw1]

Thanks for the response, this answer applies to rental income only and I understand it.

My question is when my wife and I sold a rental property and need to report capital gain. turbo tax has no place to enter the % of ownership ( 50% my wife, 50% myself) to calculate the proper capital gain.

example: the total capital gain of selling a rental property minus expenses is $100,000

50% taxable is $50,000.  Co-ownership of 50% each so my wife's portion is $25,000 and my portion is $25,000

But turbo tax does not have this option to enter % of co-ownership when selling a rental property, so the number indicates on the form is $50,000 for each of us, which is incorrect and is double the $

thanks

[TurboTaxSusan]

Are you using TurboTax CD/Download or TurboTax Online?

[SLaw1]

I am using turbo tax premier CD

[TurboTaxSusan]

You would only enter 50% of the sale price on each spouse's return. If you are using Forms mode, you can fill out Schedule 3 with the sale, and then select Edit > Forms > Copy/Transfer Form > Copy to duplicate Schedule 3 onto the 2nd spouse's return. In EasyStep you just type in the same info twice, once for each spouse.

[SLaw1]

ok this made sense just to enter 50% of the sale price, believe for the selling cost such as lawyer fee, Realtor commission etc., also enter 50 % for my wife and myself?

thanks

[TurboTaxGinette]

You're welcome.

Thank you for choosing TurboTax.