Investors & landlords

You are not required to set up two new assets in the rental activity.  TurboTax Premium Online accounts for the value of the land in the residential rental asset.

Whether you have two assets or the land value is reported within the rental property, the selling price and sales expenses will need to be allocated between the land under the rental property and the structure built upon the land.

If so, in TurboTax Online, follow these directions for the sale/disposal of a rental property.  

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Click on the down arrow to the right of Rentals, Royalties and Farm.
• Click to the right of Rental Properties and Royalties.
• At the screen Your rentals and royalties summary, click the pencil to the right of the property sold.
• At the screen Here's rental property info, scroll down to Assets, click the pencil to the right.
• At the screen Your property assets, click Edit to the right of the rental property.
• Cycle through the questions.
• At the screen Tell Us More About This Rental Asset, select This item was sold, retired, stolen, destroyed, disposed of......
• At the screen Disposition Information, enter the date sold / retired from use.  Continue.
• At the screen Special Handling Required?, review the questions.
• At the screen Home Sale, review.
• At the screen Sales Information, enter numbers for sales price and expenses of sale.  Click on Continue.

At the screen Results, you will find that there will be two sale entries, one for the rental structure and one for the land the structure sits on.

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