Investors & landlords
You are selling the house, land and any other assets that were listed. You said that you had made improvements, those items need to be sold for zero -since they went with the house. This will give you some loss. For example, a new roof of $10,000 that was only depreciated $1,000 leaves a $9,000 loss.
To get the program to allow you to use the rental section, mark that it was rented for a day. If you don't need to go through that section, you can enter it all in the stocks, bond, and other income section.
To go through the rental section:
- Start by saying you rented it for a day
- In the asset section, mark that you sold the item and the date sold
- Special handling- select No
- Main home, select No
- Enter sales information- you have to break out the land from the house. You can use property tax valuation or another method to determine your reasonable answer.
- Continue, no,
- prior AMT depreciation - will be the same as the regular depreciation unless you are high income and have form 6251 in previous returns. If so, check them.
- continue, no to installment
- results for the house
Do this again for any other assets you had listed except mark them sold as zero.
