Investors & landlords
You are correct. You must go into each asset, indicate it was sold, then enter the sales price and sales expenses. This is the normal process for any rental sale.
The IRS requires that the selling price be proportionately prorated to arrive at a selling price for each 'piece' of a rental property since many assets can be placed in service at different times, such as your roof.
The selling price should be prorated for each asset then entered for each asset when you indicate they were sold or disposed of. You will not lose the remaining depreciation because you will use the remaining basis against the selling price to determine gain or loss.
To figure out the selling price for each asset:
- Take the current basis of each asset against the total combined basis of all of your assets to figure out the sales price for each one; OR
- Determine a fair market value for each asset against the total value of all assets to figure out the sale price for each one.
You need to dispose of the property by telling the software how and when it was disposed of.
- Down the left side, click Federal
- Click on Income & Expenses
- Under Your income and expenses, scroll down to
- Rental properties and royalties, click Edit/Add
- Do you want to review your rental?, click Yes
- Under Rent and Royalty Summary, click Edit
- Click Update to the right of Assets/Depreciation.
- Do you want to go directly to your asset summary?, click Yes and Continue
- Click Edit to the right of the assets to be disposed
- Go through several screens until you get to Tell Us More About This Rental Asset
- Click on This item was sold…….
- And continue to answer the questions
See also here.
