You do not, under any circumstances, change the cost on *anythjing* in the assets/depreciation section. If you do, you will completely screw up the depreciation and the entire depreciation history. That will make it "IMPOSSIBLE" to correctly report the property sale and practically guarantees you an audit 24-36 months after you file the return.
Generally, the only reason for using a different cost basis when selling the property, is because what you paid for the property was more than it's FMV at the time it was placed in service. So you *CAN* *NOT* report the sale in the SCH E section of the program.
First, work through the SCH E section of the program and start by selecting the option to indicate that "I sold or otherwise disposed of this property in 2019" and then press on through.
In the Sale of Asset/Depreciation section you have to work through each individual asset one at a time and on each individual asset select the option for "I stopped using this asset in 2019". When asked for the date you stopped using it, enter the date that you closed on the sale. When presented the "Special Handling Required?" screen, you ***MUST*** select YES. If you select NO then you will be *FORCED* to enter sales data and you will *NOT* be reporting the sale in this section.
Once you have completed working through the rental property in it's entirety, go back to the "sale of assets/depreciation" section and work through each individual asset again. Do not change anything as you do this. Simply write down the numbers for each individual item for "prior depreciation" and "current depreciation". Once you've got all the numbers, add them together to get your total depreciation taken on the entire property and all of it's assets. You will *NEED* that number later.
To report the sale, you will report it in the Sale of Business Property" section.
If you are using the Self-Employed or Home and Business version, it's under the Business tab.
If you are using any other version of Turbotax, it's under the Personal Income tab. Scroll down to Business Items and you'll find "Sale of Business Property" under that.
Just start working it through.
