Sale of rental property - rental end date is different from sold date.

Forum|Forum|3 years ago
December 28, 2022
1 reply
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My rental property was rented from January 1 to the end of February 2022. Then I sold the property in early May 2022.
In turbotax when I follow the prompts for sale of rental property, there is only one field for:
Date you sold / retired from use:

The date I sold (May 4, 2022) is different from the date I retired from rental use (Feb 28, 2022).

If I put the May 4, 2022 date then the date sold in form 4797 is correct but the rental property depreciation is calculated till May 4, 2022 which is false, it should be calculated till Feb 28, 2022.

How can I put the correct date when the property was rented vs the date the property was sold, so that all forms are correct?

There was a similar case before and the question asked is almost the same. One answer posted was to use sold date. But then the depreciation is calculated for 4 months (2 extra months), which is wrong, since the house was not rented during the last two months. Anyone has a better idea? Help is appreciated.

TurboTax Online

Critter-3

Just use the sale date for everything ... don't stress the small amount of depreciation being taken for a couple of months. However if you really want to do the extra work ... you will convert all the assets to personal use to stop the depreciation and get the depreciation worksheet from the print center. Then in the Sale of Business Assets later in the interview you will need to enter the sale at that point using the information on the depreciation worksheet.

JWEI_95661Author

Depreciation should be two months only, not 4+ months. Turbotax should make some changes to enable people to put in two different dates, so that the depreciation is calculated correctly.

Critter-3

Sorry ... but the program is not written that way ( and neither are the professional programs either). Technically you could keep it as a rental while it is on the market. If someone came by and wanted to rent it at twice the normal price you may have agreed to keep it a rental. Most folks will simply use the sale date to stop the depreciation as it usually doesn't make that big a difference to the bottom line.