Investors & landlords

You will not report the 1099-S itself, however the sale will be reported under your rental property.  More details are included for you below.

First you must figure out the selling price of each asset in the rental house activity:

To figure out the selling price for each asset:

1. Take the current basis of each asset against the total combined basis of all of your assets to figure out the sales price for each one; OR 
2. Determine a fair market value for each asset against the total value of all assets to figure out the sale price for each one. 

Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset.  Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset. (Choices would also be fair market value on the date of the sale or adjusted basis on the date of the sale, which is cost less depreciation.)

Example:  Original Cost (of each asset on your depreciation schedule)

$10,000 Land                = 13.33% 

$50,000 House              = 66.67%

$15,000 Improvements  = 20%

$75,000 Total                 = 100%

Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.

Next you will report the sale and TurboTax will calculate the gain or loss for your tax return.

You need to dispose of the property by telling TurboTax how and when it was disposed of.  Follow the instructions below.

1. Search (upper right) > Type rentals > click the Jump to.. link
2. Do you want to review your rental?, click Yes
3. Under Rent and Royalty Summary, click Edit
4. Click Update to the right of Assets/Depreciation.
5. Do you want to go directly to your asset summary?, click Yes and Continue
6. Click Edit to the right of each asset to be disposed of/sold
7. Go through several screens until you get to Tell Us More About This Rental Asset
8. Click on This item was sold…….   And continue to answer the questions

You might also review information here.