Sold a rental property... Where does Turbo Tax take original purchase price into account?

[ernielail]

I'm entering the asset sales price, but don't see an area to put in the original purchase price. Does turbo tax do this automatically?

[HelenC12 · Accepted solution]

Yes, TurboTax will use the purchase price you entered, when you initially set up your building, as an asset for depreciation purposes.

To report the sale of your rental:

1. With your return open in TurboTax, search for rentals and then select the Jump to link in the search result.
2. Answer Yes to the question Did you have any rental or royalty income and expenses in 2019 for property you own?
3. When you get to Is This a Rental Property or Royalty? select Rental property and fill out the description, address, and owner.
4. When you hit Do Any of These Situations Apply to This Property? check the Sold box along with any other boxes that may apply.
5. Continue following the onscreen prompts to enter info about your rental property. Eventually you'll get to the Review Your [Property] Rental Summary screen.
6. You can report the sale in the Sale of Property/Depreciation section, along with any other pertinent info (like income and expenses)

Tip: Take your time and pay close attention. There's a lot of info and it's easy to miss if you're in a hurry.

• Terminology Tips

Related Information:

• Where do I enter Form 1099-S?
• Where do I enter the sale of a second home, an inherited home, or land on my 2019 taxes?

Source: TurboTax FQ