You have the option to report the sale separately from the retiring the assets.
- Report that you stopped using all the assets on the day in 2024 when the property was no longer used as a rental. You need to edit each asset to enter the date.
- Report that you didn't rent the property at all in 2025. You should see a warning note that TurboTax will delete all information about the property, and you will need to save your records should you sell it in the future.
- Report the sale of the property under Investment Sales (Form 1099-S, even if you didn't receive that form). Basically, you report the sales proceeds and selling expenses, then use your adjusted basis (cost less accumulated depreciation) to determine the capital gain or loss on the sale.
Note that if you have another Rental Property, you can add the carryover losses to the sold property from the "Situations" page by checking the box for "I have passive activity real estate losses carried over from a prior year."
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
