Was the building (and land) entered as a rental asset?
Yes, if you used TurboTax year after year, the depreciation would carry over.
Entering the "put into service" date and purchased price would also indicate the proper depreciation. (you need to have given a value to the land, which is not depreciated and then also to the building. Sales proceeds are then divided between the assets)
You do not report the sale of the rental under
Business
Less Common Business Situations
HERE IS HOW TO REPORT THE SALE OF A RENTAL
Enter all the 2024 income and expenses for that rental first
Go to the "Property Profile" section, and select "I sold this rental in 2024" on the "Do Any Of These Situations Apply To This Property?" screen.
Continue through that interview but do not leave the Rental Section
Scroll down to Sale of Property/ Depreciation
(if you don't see Sale of Property/ Depreciation you didn't select "I sold this rental in 2024")
Yes, I want to go to my asset summary
Select EDIT for the property
Continue through this interview and be sure to select on the "Tell Us More About This Rental Asset" screen ALL-
I purchased this asset (if appropriate)
The item was sold
Yes or No to 100% use
Continue through the interview and report the sale
Allocate the sale proceeds to the property and the land, as well as any additional assets listed for that rental
Sale proceeds over cost will be capital gain (capital gain tax rate)
DEPRECIATION RECAPTURE will be Ordinary Income (your tax rate)
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