Where is the place to enter the sale of a rental property? ive walked through the interview and followed the on line instructions and it never pops up to enter the sale

Forum|Forum|2 years ago
March 14, 2024
1 reply
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It says it will be entered inthe expenses and depreciation section, but nothing self populates there. I did mark that the property had been sold at the beginning of the section

TurboTax Online

Carl11_2

Employee

Assuming it was classified as a rental at the time you sold it, you report the sale in the Rental/Royalty Income (SCH E) section of the program.

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 2023". Select it. After you select the "I sold or otherwise disposed of this property in 2023" 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 2023" 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.

DRK013Author

I’ve owned the home for 36 years and it’s no longer an asset on my depreciation list. So it’s not there for me to work on. Do I list it there at the sell price or at the original base price? I’m lost on this one. The first thing I’ve ever been stumped on in all my years of doing my own taxes.

PatriciaV

Employee

Did you report that you didn't rent the property at all during the current tax year? If so, TurboTax deleted the property history, which explains why the asset is no longer on your depreciation list.

Look for Form 4562 Depreciation and Amortization Report in the worksheets of your prior year return. You can use the information from this report to enter the dates, cost, and prior depreciation for the sale.

Since you don't have the asset under a rental property, you may enter this transaction under Investment Income >> Stocks, Cryptocurrency, etc. >> Other (1099-S).

@DRK013

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