You don't report it anywhere on any tax return. You have it away. You didn't sell it to anyone.
Work through the rental and on one of the first three screens at the start select the option for "I sold or disposed of this rental in 2019" and then press on.
You'll record any and all rental income received and rental expenses incurred up to the date of ownership transfer.
Next, you'll work through the "Sale of Assets/Depreciation" section. You must do this for each individual asset listed.
Start working through the asset and when asked "Did you stop using this asset in 2019?" click YES.
On the "Special Handling Required?" screen, read that screen so you will understand why I am telling you to click the YES button. Then click the YES button.
Your date of disposition will be the date on your quit claim deed to did to your son. This date must be the same for each and every individual asset listed.
Finish working through the rental property in it's entirety and finish the rest of your tax return. You're not done yet.
After you have completed your tax return and are ready to e-file it, you need to print the return in it's entirety. You can do this before or after you e-file. It doesn't matter. There are some documents you will need to provide to your son so he can enter this correctly on his own tax return.
When you gift real estate to another, you gift *everything*. That includes all carry over losses, all prior depreciation taken, and your original cost basis. He gets absolutely everything.
Therefore, you will need to provide your son both IRS Form 4562's for that property. They print in landscape format with one titled "Depreciation & Amortization Report" and the other is titled "Alternative Minimum Tax Depreciation". Additionally, you will need to provide him your IRS Form 8582 which shows your carry over losses.
When your son enters this property in his own tax return, practically everything will be identical to what's on yours, with one exception.
His acquisition/in service date will be identical to yours, and it doesn't matter that it was years ago either.
His cost basis on all assets will be identical to yours.
His "prior depreciation taken" will be the same as yours, with the amount of depreciation you took in 2019, added to his prior year depreciation total. Your son will get the remaining depreciation for 2019 that you don't get from the time you transferred the property to him.
For the carry over losses that are a part of your gift to him, his carry over losses that he will enter into his tax return are on the form 8582 you gave him, Worksheet 1, column c.
Finally, since I have no doubt that what you gifted to your son is in excess of $15K ($30K if you're married and both you and your spouse gifted it to your son) that means you will need to file IRS Form 709-Gift Tax Return. Now don't let the name of that form scare you. You will not pay any taxes on the gift. You're just required to report it to the IRS since it exceeds $15K ($30K if MFJ). The value of the property is subtracted from your $5.2M lifetime total that you can give away with no tax consequences.
TurboTax does not support IRS Form 709. You can get that form yourself at https://www.irs.gov/pub/irs-pdf/f709.pdf You can fill it out by hand and mail it to the IRS. Do not mail it with anything related to your 1040 tax return. The 709 is NOT a tax return in any way, shape, form or fashion. It's a tax "reporting" document is all. So it gets mailed separately.
