I purchased a rental property in 2021 and demolished it the same year but I still own the land which was about half the value of the property. I'm using TurboTax for Business and am not sure how to correctly capture this transaction. I went to "dispose of rental property", then "dispose of it by some other means". Turbotax seems to have deducted the house value of the property but when I look at the 8825 worksheet I'm not sure it looks correct. I've entered 0 as the asset sale price and 0 as the land sale price. Also, on the tax return it looks like the full purchase price has been accounted for on line 2 for net real estate gain/loss. I'm not sure if I should be adding the land value as a separate asset to account for this? Thanks for any help you can provide!
