Sold Rental Property

You state you didn't use TurboTax for the 2021 taxes. But that doesn't clarify if you reported the rental property as such, on the 2021 return. I'm going to assume you did and that the property remained classified as a rental on SCH E on the 2021 return, even if you showed no rental income. If, after the last renter moved out, you did not live in the property for one single day as your personal residence, 2nd home, vacation home, or any other type of personal use, and you were actively trying to rent it, then it would be no problem for the property to be reported on SCH E on the 2021 tax return.

Note that if you did live in the property for the primary purpose of fixing it up, doing repairs, or property improvements, that would not be personal use. So you'd still have the property classified as a rental for the entire 2021 tax year with no personal use days; even if it sat vacant for the entire 2021 tax year.

That being the case, and assuming it sat vacant for 2022 up to the sale date, you can still report the property on SCH E in your 2022 tax return. Then you'd report the sale in the SCH E section of the program using the below guidance.

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2021". Select it. After you select the "I sold or otherwise disposed of this property in 2021" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even if it's zero. Then you MUST work through the "Sale of Property/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1 on some assets. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1 on some assets.

Basically, when working through an asset you select the option for "I stopped using this asset in 2021" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.