Spent today searching through a number of questions and answers on this board. Two that were particularly relevant/useful were https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/if-my-rental-home-has... and https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/all-prior-depreciatio.... "Champ user" Carl's responses have been very useful.
Still I have some issues, here are the details:
- Using Turbotax Premier, desktop version, Premier (Inv. and Rental Property) since 2010
- Bought foreign property in December 2010
- Placed property into rental in 2014. For tax years 2014, 2015, 2016, 2017, TT generated Schedule E and forms 4562, landscape mode, one titled "Depreciation and Amortization Report" and another similar for AMT
- Each form 4562 for all years 2014-2017 lists date in service as 08/03/2012
- Each form 4562 lists "Prior Depreciation" as 0 and Current Depreciation as $1888
- Other interesting columns in each of the 2014-2017 form 4562s:
- Bus. Use: 100%
- Sec. 179: Blank (and 0 where it says Subtotal prior year and Totals)
- Special Dep. Allowance: Blank (and 0 where it says Subtotal prior year and Totals)
- Life: 40.0 (I believe this is correct since the property is foreign and placed in service prior to 2017)
- Method/convention: ALT/MM
- Property ceased being rental in 2017. No Schedule E or 4562 in years 2018 until now. This may be because I didn't go into the Rental Income part of the TT interview those years. Based on Carl's responses, I believe it appropriate the property switched to personal use on 1/1/2018 as it wasn't rented out.
- The property was never used for personal use. Never primary home.
- Property was sold in 2022. Sale price was substantially lower than purchase price in US dollars
I am entering the sale in the "Sale of Business Property" section, since it is no longer an active rental. I have been able to calculate the purchase and sale prices using the exchange rates in vogue at those times (both purchase and sale involved multiple payments, so picked the rate appropriate on each of those days).
My questions are:
- How do I find the depreciation? Is it 0 because each "Prior year" depreciation shows 0 in the forms 4562? Or is it $1888 * 4 years = $7552?
- The sale of business property section asks for alarmingly little information. Just the basis, sale price, depreciation, dates purchased/sold. Since the sale is foreign, there is no form 1099-B etc. Wouldn't the IRS care about more details like the sale deed etc.?
