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Gain on sale of real property appears incorrect - TurboTax Business 2022

Forum|Forum|3 years ago
February 28, 2023
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On the "Tell Us More About the Disposal of Your Asset" page I've entered the amounts received and the sale expenses for the building and the land of this rental property separately, as requested. The computed gain reflects only the building part of the sale, accounting for prior depreciation . Do I need to enter the land as a separate asset? If so, do I leave those fields blank on this page?

TurboTax Business Windows

Best answer by DaveF1006

The land is a capital asset thus is handled differently. You wouldn't list this as an asset in the sale of your home because it is not a depreciable asset. Here is how to enter just the sale information about your land.

Go Federal Taxes tab, then Wages & Income, then scroll down to Investment Income and select Stocks, Mutual Funds, Bonds, Other.
Respond "yes" to Did you sell any investments? You'll then be asked Did you get a 1099-B or brokerage statement? and you'll answer "no." Then you'll be shown a list of various investment sales and you'll select "land."
You'll be taken to the screen that says Enter Land Sale Information and you'll be able to enter your information. Be aware of the tiny box that says "I paid sale expenses not included in proceeds," as it must be checked if applicable to you.
Then hit "continue" and follow the prompts, where TurboTax will ask you follow-up questions.

DaveF1006Answer

The land is a capital asset thus is handled differently. You wouldn't list this as an asset in the sale of your home because it is not a depreciable asset. Here is how to enter just the sale information about your land.

Go Federal Taxes tab, then Wages & Income, then scroll down to Investment Income and select Stocks, Mutual Funds, Bonds, Other.
Respond "yes" to Did you sell any investments? You'll then be asked Did you get a 1099-B or brokerage statement? and you'll answer "no." Then you'll be shown a list of various investment sales and you'll select "land."
You'll be taken to the screen that says Enter Land Sale Information and you'll be able to enter your information. Be aware of the tiny box that says "I paid sale expenses not included in proceeds," as it must be checked if applicable to you.
Then hit "continue" and follow the prompts, where TurboTax will ask you follow-up questions.