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Investors & landlords
It depends. If you complete the sale through the step-by-step, TurboTax will apply the correct IRS property. See the steps below and an example to arrive at the sales price for each asset.
1250 Property:
- The residential rental property itself, which is real property, and any capital improvements that are structural components of the building and depreciated over 27.5 years.
1245 Property:
- Appliances
- HVAC (if depreciated less than 27.5 years)
- Carpet (if depreciated less than 27.5 years)
You need to dispose of the property by telling TurboTax how and when it was disposed of. Follow the instructions below.
- Click on Wages & Expenses
- Scroll to Rental properties and royalties, click Edit/Add or Start/Revisit
- Do you want to review your rental?, click Yes
- Under Rent and Royalty Summary, click Edit
- Click Update to the right of Assets/Depreciation.
- Do you want to go directly to your asset summary?, click Yes and Continue
- Click Edit to the right of each asset to be disposed of/sold
- Go through several screens until you get to Tell Us More About This Rental Asset
- Click on This item was sold……. And continue to answer the questions
You might also review information here.
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April 1, 2024
6:36 AM