Thank you @DianeW777, the rental I sold is a house that I’ve rented out for thirty years, and it now has a list of about thirty Asset Entry Worksheets.
I re-imported last year’s return and started a new tax return, and using the Step-by-step to complete the sale, I took notice of whether TurboTax software defaults each asset’s Property Type to either ‘Real Property’ or to ‘Trade or business‘. From TurboTax ‘Asset Entry Worksheet’, every asset defaulted to the property type as you described with one exception -
- 1. Description of Asset: Sewer Line (House to Street)
- 5. Type of Asset: O – Other
- 23. Property type: defaults to ‘Real Property’
- 45. Depreciation Type: MACRS
- 46. Asset Class: 25
- 47. Depreciation Method: SL
- 48. MACRS convention: HY
- 51. Year of depreciation: 18
I suspect I may not have entered it correctly years ago when the asset was originally entered for depreciation. Would you recommend leaving this asset's property type as ‘Real Property’ or ‘Trade or Business’?
