To report the sale of a rental property, you will enter this in the same place you reported the income and expenses, "Rental Properties and Royalties (Sch E)." In the Expenses/Assets section, the interview will ask if you sold the asset. There, you will answer that you did, and report the proceeds. The capital gain (or loss) will be computed and entered on Schedule D.
For more information, see I sold my rental property. How do I report that?
