I have seen variations of my question in some threads, but no definitive answer. I have a rental property which has a number of improvements all entered into Turbotax and depreciation has been calculated for a number of years. Now I have sold the property. When I go into the Rentals and Royalties section, I click on the box to indicate that I have sold the property. Later it asks me for the amount of proceeds distributed across the land and building. But it does not include the basis of improvements, as adjusted for depreciation, in the calculation of gain/loss so my gain is more than it should be. I saw someone suggest that the proceeds should also be distributed across the improvements, but Turbotax does not provide a way to do that or flag that the improvements have also been sold, when I enter each improvement asset. This seems like a flaw in the software, but appreciate any further thoughts.
