Deductions & credits

Report the sale of your condo under your rental activity. 

1. Under Income select your Rental Income > Edit > Continue to the screen 'Tell Us More About This Rental Asset'. 
2. Select that you purchased it, also the item was sold, retired, ...., etc. > 
3. Yes always used 100% for business if there was no personal use during ownership since the rental activity began.
4. See more details below.

If you had any losses that were not allowed in prior years and were carried over because of your income level, all losses are allowed in the year of sale and do not get included in your sale figures. TurboTax will know this information if you entered any passive unallowed losses from 2023.  When you select to Edit next to your rental property, scroll to Less Common Situations to review any carryover losses (from Form 8582 in your 2023 tax return ). TurboTax should carryover this loss automatically, so confirm, if this applies to you.

To figure out the selling price for each asset:

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. (Choices would also be fair market value on the date of the sale or adjusted basis on the date of the sale, which is cost less depreciation.)

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.

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

1. Under Rent and Royalty Summary, click Edit
2. Click Update to the right of Assets/Depreciation.
3. Do you want to go directly to your asset summary?, click Yes and Continue
4. Click Edit to the right of each asset to be disposed of/sold
5. Go through several screens until you get to Tell Us More About This Rental Asset
6. Click on This item was sold…….   And continue to answer the questions

You might also review information here.