No, you don't need to add/enter any rental assets.
Since you have already reported that the Rental Property was sold under the property profile, you need to actually report the sale of all the rental assets as follows:
- Go to your asset summary page and click Edit beside the first rental asset you sold.
- Continue to the page "Tell Us More About This Rental Asset" and check the box for "The item was sold..." Enter the date of the sale in the pop-up box.
- Follow the prompts to enter the sale information.
- Continue back to the list of assets.
- Repeat steps 1 through 4 for each property asset.
- Continue back to the Property Summary page. Click Done and answer any follow-up questions.
You will need to allocate the sale proceeds and selling expenses to the asssets using any reasonable method. Most taxpayers use the adjusted basis at the time of the sale. Calculate the percentage of basis that belongs to each asset, then apply that percentage to the sale.
Example:
- Total Basis: $80,000 for home & improvements (net of depreciation); $20,000 for land ($100,000 total)
- Percentage of Land Basis: $20,000/$100,000 = 20%
- Total Sales Proceeds (gross sales price) = $150,000
- Sales Proceeds for Land = 20% x $150,000 = $30,000
- Sales Proceeds for Home = $150,000 - $30,000 = $120,000
- Total Selling Expenses = $10,000
- Selling Expenses for Land = 20% x $10,000 = $2,000
- Selling Expenses for Home = $10,000 - $2,000 = $8,000
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
