In TurboTax Premium 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 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.
- At the screen Tell Us More About This Rental Asset, select The items was sold, retired, stolen, destroyed, disposed of, converted to personal use....
- Enter the date sold. Continue.
- Continue through the screens about the disposal of the asset.
I am confused over the "Land" value issues. The cost of land for the rental property asset may be added at the screen Tell Us About This Rental Asset.
If the computation is properly computed, you will find that there will be two sale entries, one for the rental structure and one for the land the structure sits on. The rental property asset maintains a cost basis for the structure and a cost basis for the land beneath the structure.
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