Closing a Rental Business

[sflaumen]

My wife was the sole owner of a condo that she rented and reported on Schedule E as a business in the past. She passed away last year. The condo has been retitled to me. I am terminating the condo as a rental business but keeping the condo as property. How do I report this on Turbotax for my 2022 Federal tax return? 

[ThomasM125]

I am sorry to hear of your loss.

The first thing you should do is look at the rental property entries in TurboTax and review the Business Assets section and make a note of the cost and date put into service of the house and land, plus any other assets that are being depreciated. This will allow you to determine the depreciation on the property that you will need to know if you ever sell it.

Then, update the Business Profile and edit the question that say Disposed of Business in Current Year to indicate that the rental has ended. That will cause the rental property to stop being reflected on your tax return going forward.

[sflaumen]

Thomas, Thanks very much for the help!

Steve