You may report the sale as $1 unless you have an IRS Form 1099-S reporting a different sales price.
Cost of sale would be the price that you paid for the property plus the cost of any capitalized improvements (replacement roof, water heater, remodel costs).
Date of purchase would be the date of closing of the purchase.
Date of sale is the date of closing of the sale.
When you sell a rental, in addition to capital gains, you may have Depreciation Recapture. If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if otherwise nontaxable) as ordinary income.
To report the sale, follow these steps:
- With your return open in TurboTax, search for rentals and then select the Jump to link in the search result.
- Answer Yes to the question Did you have any income from rentals or royalties?
- When you get to What are you here to report? select Rental property and fill out the description, address, and owner.
- When you hit Tell us about your situation this year check the Sold box along with any other boxes that may apply.
- Continue following the onscreen prompts to enter info about your rental property. Eventually, you'll get to the Review your rental property info screen. You can report the sale in the Expenses/Assets (Depreciation) section, along with any other pertinent info (like income and expenses)
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