DianeW777
Expert Alumni

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.

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

You might also review information here.

 

@PN10 

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