Where do I enter sale price of a rental property?

Forum|Forum|5 years ago
July 18, 2020
3 replies
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I am running a test to get an estimated tax owed if I sold a rental property that has been depreciated within the past 10 years. Where do I enter the sale price? The "sold property" box is checked but no option is given to enter the sale price. Thanks for your assistance.

Best answer by Critter-3

You did not say if you were using the Online or Downloaded versions ...

You CANNOT massage the .tax file in any way when using the TT On-Line version. ANY changes (what-ifs) that you make will PERMANENTLY change your .tax file.

You have 2 options:

Buy the Desktop version and install it on your computer --you can download the .tax2019 file from your On-Line return and use it to open your Desktop version. (You CANNOT upload the .tax2019 from a Desktop return to work in the 2019 On-Line version.) The Desktop version CAN do 'What-If' scenarios.

Create a new On-Line account for each 'what-if' that you want to try.

To sell a rental :

https://ttlc.intuit.com/questions/1933977-i-sold-my-rental-property-how-do-i-report-that?jump_to=answer_3388350

Critter-3Answer

You did not say if you were using the Online or Downloaded versions ...

You CANNOT massage the .tax file in any way when using the TT On-Line version. ANY changes (what-ifs) that you make will PERMANENTLY change your .tax file.

You have 2 options:

Create a new On-Line account for each 'what-if' that you want to try.

To sell a rental :

https://ttlc.intuit.com/questions/1933977-i-sold-my-rental-property-how-do-i-report-that?jump_to=answer_3388350

GhanouniAuthor

I am using TT Premier 2019 installed on my desktop. Have used TT now for over 15 years. Please advise how do I proceed to do what if cases and where do I enter the sale price of the rental property when sold? Thank you.

Critter-3

Did you click on the link I posted earlier ? https://ttlc.intuit.com/community/rental/help/i-sold-my-rental-property-how-do-i-report-that/00/26251

Basically you will indicate it was sold in the Rental Info section then sell off the assets in the assets section.

And if you don't know already .....

This is my mini version of a tutorial that should be in the downloaded program:

What is Forms Mode?

Forms Mode lets you view and make changes to your tax forms "behind the scenes."

If you're adventurous, you can even prepare your return in Forms Mode, but we don't recommend it. You may miss obscure credits and deductions you qualify for, and you may forget to report things that will come back and haunt you later.

Forms Mode is exclusively available in the TurboTax CD/Download software. It is not available in TurboTax Online.

Related Information:

If you want to play around with different figures and tax scenarios without affecting your original return you can ….

>>>In the TurboTax CD/Download software by creating a test copy:
1. Open your return in TurboTax.
2. From the File menu, choose Save As.
3. Give the copy a new name to distinguish it from the original (for example, by adding "Test" or "Example" to the file name).
4. Click Save. You are now safely working in the test copy and anything you do here will not affect the original.
https://ttlc.intuit.com/questions/1900642-how-to-make-a-test-copy-of-your-return

>> use the WHAT IF tool:
- Click Forms Icon (upper right of screen) or Ctrl 2 (forms view)
- Click on the Open Form Icon
- In the “Type a form name.” area type What-If (with the dash), click on the name of the worksheet - click on Open Form
- You will see the worksheet on the right side of the screen; enter the information right into the form
- To get back to interview mode - click on the Step-by-Step Icon (upper right of screen) or Ctrl 1

It's always a good idea to make a backup copy of your tax data file, in case your original gets lost or corrupted. Here's how:

From the File menu in the upper-left corner of TurboTax, choose Save As (Windows) or Save (Mac).
Browse to where you want to save your backup.
- Tip: If you're saving to a portable device, save it to your computer first to prevent data corruption. Then, after completing Step 4, copy or move the backup file to your device.
In the File name field, enter a name that will distinguish it from the original tax file (for example, add "Backup" or "Copy" to the file name)
Click Save and then close TurboTax.
Restart TurboTax and open the backup copy to make sure it's not corrupted. If you get an error, delete the backup and repeat these steps.

If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.

Related Information:

AND save it as a PDF so you have access to a copy even if you don’t have the program still installed and operational :

AND protect the files :

How can I protect the tax files on my computer?

Carl11_2

Employee

Heed the warnings in the previous post in this thread. Ignore them at your own peril.

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 2019". Select it. After you select the "I sold or otherwise disposed of this property in 2019" 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 it it's zero. Then you MUST work through the "Sale of Assets/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. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1

Basically, when working through an asset you select the option for "I stopped using this asset in 2019" 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.