How do I calculate the depreciation for the sale of my rental property

Forum|Forum|4 years ago
April 2, 2022
1 reply
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We owned a rental property for approx. 19 years. It was never our primary residence. We sold the property in October of 2021. I have 2 questions

1. How do I figure the cost basis

2. How do I calculate the amount of depreciation to enter

I am using TT premier on my home computer. I have all of my entries made except for the sale of the property. I have the info with the charts to use for depreciation from publication 946 but I'm confused about how to input the info.

Carl11_2

Employee

Have you been using TurboTax in past years to file your taxes? Have you been depreciating the property every year as required? If so, then you really should not need to figure or calculate anything. The program will do it "for you".

Cost basis is what you paid for it when you originally purchased it, plus the cost of any qualified property improvements. That figure "should" already be known by the program.

If you've been depreciating the property over the last 19 years, the program already has that figure to.

Where "exactly" in the program are you reporting the sale? If you're not reporting it in the SCH E section, then may I ask why not?

JansPlaceAuthor

I was able to go back and locate several of my past returns. I found that the depreciation had been taken on all the earlier years, but I didn't see it for 2020. I have used TT for all of my returns. Why would it not be there for that year but it was for all the rest through 2019

Carl11_2

Employee

One question if I may. Please take a look at your 2020 IRS SCH E line 18. I expect you to find an amount on that line under the column for the rental property in question. Is this so?