Sale of Rental Property

I went back through my rental property and entered the rent received, management and expenses, etc.  When the asset summary I clicked yes on the Did you stop using this asset in 2021.  In Disposition I entered the date I closed on the sale of the house,  in the Date acquired I used the date I bought the house in 1996.  On the topic Special Handling Required? I clicked yes.  It gave me a figure for the depreciation for the 94 days I owned the property.  I continued through all of the assets that had depreciation and clicked done.   I didn't understand the QBI Safe Harbor and clicked no. I didn't understand the Qualified Business Income and clicked no.  I clicked done on the Review Rental Income and Expenses, and that brought up the Rental and Royalty Summary.  That ended everything, and shows a loss.  I never got to the Tell Us More About This Rental Asset screen.  Nothing about the 1099-S came up.  What Am I doing wrong?

Cathy if you had rental income, in 2021, when you enter your 1099 Misc information, there's a block that asks what you did with the property.  Click the box that says sold.  Enter all of your expenses (management, repairs, maintenance, etc.). Your asset summary should open.  Click on edit of each asset.  A box will open.  Enter the sale date.  Eventually a question concerning special handling will open.  It defaults to NO.  Click on the NO.  That will open a box for you to enter your sales information.  Do that for each asset.  This will allow the software to compute depreciation recapture, prepare schedule D and the other form ( can't remember the number).  I was lucky.  When I bought my property, the cost of the land and house were listed separately.  I hope this helps.  I think the special handling question is misleading and could be worded better.

You need to dispose of the property by telling TurboTax how and when it was disposed of.  Follow the instructions below.

1. Click on Income & Expenses
2. Under Your income and expenses, scroll down to
3. Rental properties and royalties, click Edit/Add
4. Do you want to review your rental?, click Yes
5. Under Rent and Royalty Summary, click Edit
6. Click Update to the right of Assets/Depreciation.
7. Do you want to go directly to your asset summary?, click Yes and Continue
8. Click Edit to the right of each asset to be disposed
9. Go through several screens until you get to Tell Us More About This Rental Asset
10. Click on This item was sold…….   And continue to answer the questions

@motmartin

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@Tf_db wrote:

I just wanted to say that I am currently going through your exact situation. I’m talking, with the exception of the amounts, 100% step by step what you are going through. You click yes to the Special handling and never get prompted for any other information on the sale. 

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"Special Handling" generally means you need to manually find a spot elsewhere in the program to report the sale. 

I don't know what situation you are in, but it is often reported in the "Sale of Business Property" section.