Sale of a rental single family home

Forum|Forum|1 year ago
March 20, 2025
1 reply
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On Turbo tax desktop downloaded from turbo tax...I am trying to input the sale of a rental single family home.

Based on previous notes from turbo tax experts, I added landed under depreciation. In knowing that I cannot take depreciation on it, I have identified the land under rental real estate property, then I am not sure whether to identify it as residential rental real estate or land improvements. It seems to give me an error when using the rental real estate but that makes more sense. the cost and cost of land, I put the same cost value and that is causing an issue too. I'm stuck

Thanks for any help.

TurboTax Home & Biz Windows

JamesG1

I believe that you are entering the asset which was sold in 2024 into the residential rental activity.

If this is the case, the asset should be described as Rental Real Estate Property and categorized as Residential Rental Real Estate.

This entry will allow you to report the Cost of the asset (and amount to be depreciated) as well as the Cost of the Land (which is not depreciated).

You will then allocate the Sales Price across both the Land portion and the Improvement portion of the asset.

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cc222Author

Ok I found a u tube on this subject but I need one more question answered....I created a new asset for land and house. That way I could identify the land portion which I could not do before.

In the page titled "tell us about this rental asset"... What is the cost vs cost of land? Does the cost equal just the depreciable house and the cost of land is land cost? The depreciation expense doesn't look correct...

Original purchase/cost is 147,278

cost of land portion in the original cost is 32,401

Cost of rental house for depreciation is 114,877

Please confirm what number goes into cost vs cost of land.

I believe that cost of land is 32,401. But I don't know which number would go into line for cost: Thanks

DawnC

Employee

When you enter the house asset, you will be required to separate out the cost of the house and the land. For your asset, it would show cost 114877 and land is 32401. Land is not depreciable, so TurboTax will only depreciate the cost of the house this way.