Investors & landlords
First you say you entered 'with 0 day of rental and 0 day of personal use for the property while doing repair until the closing date of May, 2022'. Instead you should say yes it was rented all year and yes to rented at fair rental value (if that is true). When you select that the rental property is 'sold, retired, disposed of, etc., TurboTax will know how to calculate any depreciation for the final year.
Depreciation for rentals is 27.5 year and uses the straight line mid-month convention (SLMM). This means that you are entitled to a half month of depreciation in 2022. You will enter the January 1st as the date of sale.
Report the sale under your rental asset. Under Wages & Income select your Rental Income > Edit > Continue to the screen 'Tell Us More About This Rental Asset'. Select that you purchased it, also the item was sold, retired, ...., etc. > Yes always used 100% for business.
Selling expenses would include last minute repairs to prepare for sale, and if you used a cost other than your actual cost (such as fair rental value because it was lower than your cost) when you placed the condo in service for rental, then you would use actual cost to determine gain or loss at the time of sale. Add this to selling expenses if this is the case. The expenses would be capital improvements only not repairs or expenses that are ongoing such as utilities or minor repairs.
When you mention 'unallowed loss' it's not clear what you mean. However, if you had any losses that were not allowed in prior years and were carried over because of your income level, all losses are allowed in the year of sale and do not get included in your sale figures. TurboTax will know this information if you entered any passive unallowed losses from 2021. When you select to Edit next to your rental property, scroll to Less Common Situations to review any carryover losses (from Form 8582 in your 2021 tax return as you mentioned).
Lastly, use the link below to print your tax return in TurboTax Online.
- How do I print or download by tax return I filed with TurboTax? (check the hyperlinks as well)
[Edited: 02/20/2022 | 6:58a PST]
