Sale of a Rental Property

Have you been properly depreciating the rental all these years ?  If so you will sell off the assets in the assets section and follow the screen instructions carefully. 

If you have not been properly depreciating then RUN to a local tax professional to get this mess corrected ... the form 3115 is not a DIY project.

• Asset sales price is the amount on your HUD-1. It is the contract sales price.
• Sales expenses could include the following:

Sales expenses include:

 - commissions

 - appraisal fees

 - broker's fees

 - legal fees

 - advertising fees

 - home inspection reports

 - title insurance

 - transfer taxes or fees

 - geological surveys

 - loan charges (points) or other fees paid on the buyer's behalf

You have to allocate the above expenses to both land and building sale. If the land is worth 20% and the building 80%, then the land is allocated 20% of those expenses.