Ok ... if you did put it on the Sch E then in the rental section you will (1) enter at least 1 day of renting (even if there were none) to keep it in the system and then (2) in the asset section you will sell off all the assets by dividing up the selling price and selling costs using the same total ratio as the total basis to individual asset.
Cost basis = purchase price + cost to buy + improvements
Adjusted cost basis = cost basis - depreciation taken
Sales price - ( cost basis + cost to sell ) = profit or loss
Profit - depreciation taken = cap gain
Depreciation is taxed as ordinary income not to exceed 25%.
Cap gain taxed at no more than 20%.
Ok ... a simple example of ratios ... if you have more assets than the example then you will have more lines. Remember if you divide a big number into a littler number you get a % ... thus 5000/100,000 = 5%
original cost basis ratios Sales price cost of sale
home 80000 80% 160,000 8,000
land 15000 15% 30,000 1,500
roof 5000 5% 10,000 500
totals 100,000 100% 200,000 10,000
All you need to enter into the program is the % of sales price & % of cost of sale for each asset being sold and you will have to do the math yourself as the program will not do it for you if you have more than one asset (the land & building are considered 2 assets) .
