TT Business - how do I write-off remaining house basis (demolished) without including land basis (which I still own)

[Tooledagain]

Working on a 1065. We have a residential rental property consisting of a house and land that was entered into TurboTax at purchase in 2015 (purchase price allocated between the two at the time). Now in 2021 we have bulldozed the house but still own the land. It appears the two assets are inseparable in TurboTax because the total basis that TT is writing off includes the land. When I go into the asset entry worksheet and change the basis to the remaining basis of the house only (at the time of disposal), I get an error saying that the basis should include the land. How do I write-off just the remaining house basis but not the land basis? Wondering if when real property is purchased, maybe the thing to do is enter land and house as two separate events not related to each other.

Thanks in advance for any help. 

[ThomasM125]

I assume you are entering a sale price of $0 when you report the disposition of the property. What you can do is increase that by the cost of the land, so those two amounts will cancel each other out. Then, enter the land back in so you have it listed with your assets at it's original cost and date put into service.

[Tooledagain]

Thanks for the reply.  Yes sales price is $0. I did something similar to your response. Instead of increasing Original Cost by the amount allocated to land, I reduced the Cost to the amount I had allocated to the house and changed Land Included in Cost to $0 (zero). Took land out of both amounts. So same idea - this calculated the correct amount of loss.  Not sure how to add the land back so could be an issue when the land is sold (but I will worry about this later). I did look and the asset entry area seems to be only for depreciable assets but maybe there is a place for land also.

Thanks again for the response.

[ThomasM125]

You are correct, since you can't depreciate land there is no entry for it. You can add it in the year of sale as a land improvement and enter a date put into service that is equal to the date sold so there will be no depreciation on it.