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Employee
January 20, 2019
Question

How do you procedurally enter the data into TurboTax for the sale of a rental property?

  • January 20, 2019
  • 2 replies
  • 0 views

I have used TurboTax forever so all the data relating to this property is saved within TurboTax.  My situation is this:

 

Property purchased in 2005, is a 100% business use rental.  We never occupied the house for even one minute.  We had major improvements to the property that were entered and depreciated over the course of our ownership.  Our last tenant moved out May 17, 2018.  We advertised the property for rent and at the same time, listed the property for sale through a realtor.  The house was put under contract for sale Jun 03.  We continued to offer for rent, but nobody was really interested with the house under contract.  After the home inspection, the potential buyers backed out Jul 02, 2018,  After viewing the inspection report, we determined a major electrical upgrade was required.  Jul 05, we stopped advertising for rent.  We performed about $2500 of electrical work (put in a new breaker panel and the subsequent framing , sheet rocking, etc to put the wall back together.  Aug 10 the house was again under contract and closed in Sep 2018.  

 

I am aware of the fact that repairs, maintenance, etc as a rental would end on Jul 05.  I would contend that the electrical work is a non depreciated improvement necessary to pass an inspection for the subsequent sale.  I think the sale becomes not the sale of a rental house but an investment property.  Is this the correct approach?  If so, procedurally how is this entered into TTax to come up with the correct recapture of depreciation.  It does seem to want to allow you to "take it out of service" without entering a sale price.  

 

When you get to the sale of a business property, it wants you to enter the sales price-selling expense and accumulated depreciation.

 

Thanks for your help.  The way it is set up, sort of defies logic (much like our tax code).   

 

 

2 replies

dale59911Author
Employee
January 25, 2019

Figured it out.....

Employee
April 4, 2019

I had a similar question. Can you share what you did?

May 19, 2021

I found the solution. After entering your rental information go on to the next sections until LESS COMMON BUSINESS SITUATIONS. There you will find at the bottom Sale of Business property.

HollyP
Employee
April 4, 2019

@davedaps If you sold a rental property, then click here for instructions to get started.

 

If you sold your investment property, then click here for instructions.

 

 

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