Were you reporting Schedule E for the rental?
If yes, here are the steps to report the sale.
You will use your Form 1099-S as a guide, but it is not entered as a form, there is no Form 1099-S entry screen. The IRS will match their copy to the sale you report.
Enter all the 2024 income and expenses for that rental first
Go to the "Property Profile" section, and select "I sold this rental in 2024" on the “Do Any Of These Situations Apply To This Property?" screen.
Continue through that interview but do not leave the Rental Section
Scroll down to Sale of Property/ Depreciation
(if you don't see Sale of Property/ Depreciation you didn't select "I sold this rental in 2024")
Yes, I want to go to my asset summary
Select EDIT for the property
Continue through this interview and be sure to select on the "Tell Us More About This Rental Asset" screen ALL-
I purchased this asset (if appropriate)
The item was sold
Yes or No to 100% use
Continue through the interview and report the sale
Allocate the sale proceeds to the property and the land, as well as any additional assets listed for that rental
Sale proceeds over cost will be capital gain (capital gain tax rate)
DEPRECIATION RECAPTURE will be Ordinary Income (your tax rate)
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