Thanks very much for this guidance. The first time I went through the federal section (before downloading the state software) I did complete the Schedule E information as you described but, when it led me through the Sale of Assets/Depreciation section, it never asked me for the sale amount of the house. It only asked for the cost when I bought it, the land value when I bought it, the date I bought it, the date I started renting it, the date I sold it, and the depreciation I have taken in past years-- all of which I entered (although I had to dig to find the land value from way back in 1979). At the end of that section it just showed the depreciation for the year. When I went back and repeated the process (with all the same answers) after reading your reply, lo and behold, I got the screen that asked for sale information. Weird. The only snag now is that it tells me that not entering the land sale price is an error that should be fixed. Based on your advice, though, and the fact that I don't have anything stipulating the price of the land, I am inclined to leave it blank. Correct?
My only other question at this point is, as I am going through the Louisiana state return, should I use the adjustment for capital gain from the sale of a business? It seems that I should since selling the house (which I was using as a rental) "would allow the buyer of the assets to continue the business" (i.e., renting it as I did). Quoted passage from Louisiana Revenue Information Bulletin 10-017, as referenced by the TurboTax software. Is this correct?
