When you go through the interview in TurboTax to dispose of your rental property, you will have a chance to enter the correct prior deduction (through 12/31/16) and it will show you how much it calculated the 2017 depreciation (through 06/22/17). It sounds you are saying you are not getting the correct depreciation for the period 01/01/17 - 06/22/17. I cannot see your return, so I am not able to see what could be wrong. One possibility could be if you changed the purchase price when you entered the disposal. You should enter selling expenses and closing costs in the box "Asset Sales Expense" under "Asset Sales Price". If you add selling expenses and closing costs to the cost box, it will mess up the depreciation.
You will probably have recaptured depreciation as part of the gain that TurboTax gives you at the end of the interview. This is because you took a deduction for depreciation when the property actually appreciated.
To
report the sale of rental property:
When in your tax
return, under Wages & Income tab
at the top, scroll down to Rental
Properties and click on Update. There
are 2 places you have to report the sale, in the Property Profile and the Asset section
- Continue through the next 2
screens and on the 3rd screen click on Edit next to your property
- Click on Update next to Property
Profile,
continue through the next 2 screens
- On the screen Do Any of
These Situations Apply to This Property? check the box by I sold or
disposed of this property in 2017
- If it applies, check the
box by I have passive activity real estate losses carried over
from a prior year. This will give you that deduction in 2017.
- On the next
screen Passive Losses From Prior Years, TurboTax should have
the correct NEGATIVE amounts in the boxes, if not enter
those Negative numbers manually from last years tax return
- TurboTax will lead through a
series of questions to gather the information. When you finish the Property
Profile section,
skip down to the Asset section and click on Update
- Continue through the screens
(you can go directly to the Asset summary and click on Edit next to the property),
continue answering questions until you reach the screen Tell Us
More About This Rental Asset, check the box The item was
sold, retired, stolen.... and enter the date sold
- Continue through the screens entering Asset Sales Price and Asset Sales Expenses
- Continue on and on the
screen, Special Handling Required? choose YES if you had a passive loss
carryover
- Just finish any remaining
screen, click Done to get out of Rental Section
