I have a client who purchased a property which included a Farm (for which we have been filing Schedule C activity for Horse Boarding activity since 2009) and a personal residence which the Property owners lived in- the square footage of the property is broken out as 95% farm and 5% residence. The purchase price of the property was $450,000 and the additions to the basis per the closing schedule were $5,454. The cost of depreciable additions for the Horse boarding activity over the years was $80,879 and the accumulated depreciation through 12-31-21 was $48,915. The property was sold in March of 2021 for $500,000. The expenses of sale per the closing statement were $30,310 and the costs to clear the farm area to get it ready for the sale were $10,452. What is the gain/loss on the sale of the Farm/Horse Breeding and how/where do I enter all of the above information in Turbo Tax? I believe that there will be depreciation recapture of $48,915 but I'm not sure where the loss from the sale of the Farm/Horse Boarding portion of the transaction goes.
