I need to report the sale of a rental property that has previously been reported in Turbo Tax. How do I enter? Turbo Tax had me remove the property since it wasn't rent
I need to report the sale of a rental property that has previously been reported in Turbo Tax. How do I enter? Turbo Tax had me remove the property since it wasn't rent
The steps to enter the rental sale are shown below. First you might want to re-import your data from last year if the rental is gone from your return because all of the data will be there without your manual calculations. I will include details on entering the sale of business property if you would rather gather the numbers from last year and then enter your sale without importing a second time. However, if you have any passive loss carryover amount you will need the rental activity to enter that amount and it can be all used up in the year of the sale.
Example Allocation of Selling Price/Expense of Sale: Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset. Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset. If you want you can check the allocation of building and land in your county real estate tax office, on file now.
Example: Original Cost (of each asset on your depreciation schedule)
$10,000 Land = 13.33%
$50,000 House = 66.67%
$15,000 Improvements = 20%
$75,000 Total = 100%
Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.
In the rental assets themselves:
You need to dispose of the property by telling TurboTax how and when it was disposed of. Follow the instructions below.
Click on Search (upper right) > type schedule e > Enter > click Jump to .... link
Answer the questions and on under Rent and Royalty Summary, click Edit
Click Update to the right of Assets/Depreciation.
Do you want to go directly to your asset summary?, click Yes and Continue
Click Edit to the right of each asset to be disposed of
Go through several screens until you get to Tell Us More About This Rental Asset
Click on This item was sold……. And continue to answer the questions