I sold a rental property in 2019 and have some questions about entering the sale in Turbo Tax.
First, I recorded the sale of the rental property in the ‘Your Property Assets’ section. Along with the main property, I also having the following assets listed:
-Refinancing fees
-Washing Machine
-Dishwasher
So, from what I've read, I have to go through each of those assets and enter that I have ‘disposed’ of them. Is that correct? In addition, I read that if I had a gain on the main property, I have to show a gain for each of the assets, even if it is just $1?
So, when going through each of the assets, TT asks for the asset sales price. What I’m doing is showing a gain of $1 for each asset. For instance, the cost of the washing machine was $261. So I’m entering a sold price of $262. TT does its calculations and tells me I have a gain of $247 for the washing machine and increases the amount of taxes owed. That doesn't seem right to have that large of a gain for an old appliance.
Also, if I have to enter a sales price of each asset, do I subtract that amount out of the sales price of the property? For instance, I sold the property for $250k. Do I enter the sales price of the property as $250k-$262? And then of course minus the sales price of the refinancing fees and dishwasher?
Thanks
