@tester74 all of the responses given thus far are wrong. Here's what you do in "YOUR" specific case and "ONLY" in "YOUR" specific case.
Basically, you will report the sale in the "Sale of Business Property" section.
First, work through the Rental & Royalty Income (SCH E) section of the program. for this property select the option for "I sold or otherwise disposed of this property in 2019" and then continue working it through.
Enter any and all rental income and expenses as normal.
Now in the "Sale of Assets/Depreciation" section you *MUST* work through each individual asset listed, one at a time. As you work it through, write down the prior years depreciation and current year's depreciation on each individual asset.
- Select the option for "I stopped using this asset in 2019"
- On the "Special Handling Require?" screen select YES (If you select NO you will be *FORCED* to enter sales information, and we're not reporting the sale here.)
- You must do the above for each individual asset listed, one asset at a time.
When done with everything in the "Sale of Assets/Depreciation" section, continue working through the rest of the SCH E.
If you have claimed *ANY* vehicle use at *ANY* time during your ownership of this property, then work through the Vehicle Expenses section to show that you stopped using the vehicle in 2019 and removed it for personal use. (I seriously doubt you sold the vehicle as a part of the rental property sale.)
Once you've worked through the SCH E in it's entirety, you're done with that section. Now to report the sale.
Elect to start/update "Sale of Business Property"
Select "Sale of business or rental property you haven't already reported" and continue.
Since you sold the property at a gain, select YES.
Now you can enter a description of the rental property you sold, date you purchased/acquired it, date you closed on the sale, the sale price, the "correct" cost, and then total up all of your depreciation numbers you wrote down earlier and enter that total in the last box.
Now press on with life and finish working it through. Easy-Peasy.
