Hello ! 

Here are the steps to record rental income and expenses and the disposal of the rental :

1.  Sign into your account and select Take me to my return 

2.  At the right upper corner, in the search box , type in schedule e and Enter 

3.  Select Jump to schedule e

4.  On next screen, Income from Rentals or Royalty Property You Own, answer Yes to 

     Did you have any rental or royalty income and expenses in 2016 for property you own?  Continue through a few               screens..

5.  On screen, Do Any of These Situations Apply to This Property?  check I sold or disposed of this property                        in 2016. Continue through ...

6.  On the screen, Your Rental Summary, select Start at the sections where you need to enter information.  At 

     Sale of Property / Depreciation,   select Start

7.  Follow the prompts to complete.  

See the first two attached screenshots.  Continue...  

8.  On screen, Depreciation for Your Rental Property , select Yes and follow prompts

9.  On screen, Describe This Asset, select Rental Real Estate Property and Continue, follow prompts

10. On screen, Tell Us About This Rental Asset, select Residential Rental Real Estate and select Continue

11. On screen, Tell Us About This Rental Asset, check the item was sold, retired, stolen and destroyed.

12.  Continue to complete transaction

See the last three screenshots.

I hope you find the information helpful !