I've had about 5 calls with customer support. It's been frustrating. Several times I had to convince the support staff that this was a bug in the software and not an issue with IRS not releasing a form. One customer support person said she had 3 calls on this issue. She did help me find a work around. In several cases, customer support dropped the call (due to technical issues).
This is for TurboTax desktop (Mac OS in my case).
I have a rental property that was sold in 2021. TT has a record of this property and the associated depreciating assets. I can get past the error message..."IRS is still working on the Depreciation..." by the following:
1. Go into forms and "remove form" Asset Wks (home). Your's may not be named "home". Remove form by CMD-Del (for Mac OS), or by using the Menu dropdown 'Forms', 'Remove From". For some reason, only removing the Asset Wks (home) works. Removing the Asset Wks for the improvements doesn't work.
2. Go back to easy step for the Rental Summary and try "Sale of Property / Depreciation". This should get you past the error.
3. Go to your asset summary and update your improvements. In my case I sold them with the property. Update all your assets.
4. Go back to the summary and "Add an Asset". You'll need to re-enter your rental property and in my case the sale information for selling the property.
5. This step will generate all the appropriate home sale forms, like 4979, Sched D, Unrecap 1250, etc.
6. Once you are complete and try to view the depreciation details in EasyStep, you'll get the error message again, "IRS is still working on the Depreciation..." and won't be able to edit your assets, but now you should have all you need to complete a property sale entry. You can make changes directly in most case in the forms for each asset, etc.
I hope this is helpful. Took me many hours to get this far!
Good luck.
