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April 15, 2022
Question

How do i report depreciation my 1040 when i sell the rental?

  • April 15, 2022
  • 1 reply
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1 reply

ColeenD3
April 16, 2022

You would have been depreciating each year the property was a rental. If you had a tenant in 2021, include the sale in the Rental Section. The program will include the depreciation in the sale.

 

There is no information as to whether or not you rented in 2021. If you did, enter the information in the Rental Section. If not, enter it in Sale of Business Property.

 

Full steps for entering rental property:

  • The first entry for the sale is found during the set-up of the property: Tell us about your situation this year/Click Sold or disposed of property.

Next, the asset section of expenses will already be checked: 

*Assets

*Sold rental property

Includes info on the property you sold or disposed of. Since we know this applies to you, we've already selected it.

  • After you click on Asset, you will be asked about the purchase: Tell Us About This Rental Asset
  • In the screen Tell Us More About This Rental Asset, you will indicate the sale the date of the sale, and the date you began using it for business. You can see the screenshot in a previous answer.
  • Next: Confirm Your Prior Depreciation
  • Next: Special Handling Required?
  • Next Home Sale?
  • Next: Sales Information. This is where you will be asked about the sales price