sold rental property did not receive 1099s

Are you reporting the rental property asset under Your property assets in Rental, Royalties and Farm?

If so, in TurboTax Online, follow these directions for the sale/disposal of a rental property.  You will use the information from the sale documents.  See also discussion of sales allocation below

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Scroll down to Rentals, Royalties and Farm, click Show more to the right.
• Click Start / Edit / Revisit to the right of Rental Properties and Royalties.
• At the screen Your rentals and royalties summary, click Edit to the right of the property sold.
• At the screen Here's rental property info, scroll down to Assets, click on Edit / Start to the right.
• At the screen Your property assets, click on Edit for the rental property.
• At the screen Did you stop using this asset in 2023, click on Yes.
• Enter the date sold / retired from use.  Continue.
• At the screen Special Handling Required?, click No.
• At the screen Home Sale, click No.
• At the screen Sales Information, enter numbers for expenses of sale.  See discussion of allocation below.  Click on Continue
• At the screen Personal Residence, click No.
• At the screen Installment Sales, click No.

At the screen Results, you may find that there will be two sale entries, one for the rental structure and one for the land the structure sits on.

The cost of land and the cost of improvements on the land may need to be allocated. You may need to refer to local property tax records, the original purchase documents or the documents of sale.

For instance, your local property tax statement may report that the value of the land for the property is $5,000 and the value of the structure is $45,000.  If you sold the property for $200,000, the value of the land could be allocated as:

Land           $  5,000                 

Structure    $45,000

Total           $50,000

Land assumed to be 5,000/50,000 = 10%

10% X sales price of $200,000 = $20,000 allocated to cost of land.

You also will want to dispose of any other assets that have been recorded over the years using the same process outlined above.  When disposing of these additional assets and/or improvements, you may either allocate the selling price over these assets or show a $0 selling price. 

@rguz   [Edited 03/18/2024 | 6:34 am PST]