Since it's an asset associated with a rental property - which flows through to a Schedule E, the information was entered on the Asset Entry Worksheet, which reflected a loss on Line 31 of $1,766. The following information flowed from the Asset Worksheet to Form 4797 Part 1 - Line 2 - (a) Description of property; (b) Date Acquired; (c) Date Sold (technically system was replaced); (d) Gross Sale Price (zero came through); (e) Depreciation allowed or allowed since acquisition ($1,164); (f) Cost or other basis ($2,930) and (g) Gain or (Loss) Subtract (f) from the sum of (d) and (e) ($0 is what TurboTax entered) - the loss of $1,766 did not flowthrough.
