Get your taxes done using TurboTax

Lets review the steps to enter your sale. Be sure you are entering the sales information correctly for each asset under each rental property. It seems based on your information that they are sold on installment (seller financed).  You can report all in the year of sale or on the installment method (assuming there is a gain) whichever you decide.

Sales price and Sales Expenses by asset (If already on Schedule E as a rental): What is an installment sale?

Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset.  Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset. If some assets no longer have a value you can use zero for those such as an appliance that is 10 years old.

Example:  Original Cost (of each asset on your depreciation schedule)

$10,000 Land                = 13.33% 

$50,000 House              = 66.67%

$15,000 Improvements  = 20%

$75,000 Total                 = 100%

Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.

I hope this example provides clarification to enter your sale.

You will be asked if you want to report this using the installment method.  Answer Yes or No based on your decision, then continue to finish the sale of each asset (building and land, and other assets).

You need to dispose of the property by telling TurboTax how and when it was disposed of.  Follow the instructions below.

1. Click on Wages and Income (Business tab for TurboTax Desktop)
2. Under Your income and expenses, scroll down to
3. Rental Royalties and Farm > Rental Properties and Royalties (Sch E) click Edit/Add
4. Do you want to review your rental?, click Yes
5. Under Rent and Royalty Summary, click Edit
6. Click Update to the right of Assets/Depreciation.
7. Do you want to go directly to your asset summary?, click Yes and Continue
8. Click Edit to the right of each asset to be disposed
9. Go through several screens until you get to Tell Us More About This Rental Asset
10. Click on This item was sold…….   And continue to answer the questions

You might also review information here.