Can we file a sale of a rental property for 2025 tax return yet?

[AmyC]

Yes, the Sch E and the depreciation schedules are available. 

My apologies, they all show available and have worked for me individually but the Sch E is stopping the 4562. Tech is working on it and are hoping the Feb 11 update will correct the issue.

[Edit 2/5/2026| 11:02 am PST] @petemenk 

[petemenk]

I'm still getting this message for depreciation from sale?

Depreciation and Amortization will be ready by February, but likely sooner

[CatinaT1]

Form 4562 is only ready for Schedule C and F. The Schedule E area is currently being updated. 

The software should be updated after 02/11/26, but our tech team is working hard to have those updates before that date.

[user17710017347]

Today is 2/13 and the rental property sold section is still not available, is there any updates for when this section is going to be available?

[PatriciaV]

Form 4562 is ready; however, the work on that section of TurboTax is still in the process and is expected to be available later this week with the end of the week updates, February 20, 2026. 

[user17713410894]

is 20 Feb still looking good to have sale of rental property ready?  Depreciation of basis is killing me making me sell other investments to just pay taxes when I only made a small profit from owning rental property.   I know, preaching to the choir on IRS tax code. 

[RobertB4444]

As of right now the 20th of February is still on track.

[smjaskilka]

2/19/2026 - The message about Depreciation and Amortization being available by February has gone away.  But now, after updating the property and checking the "Sold" button, it only asks how many days it was rented and how many days it was used for personal use.  That's it.  Can't get to the meat where you enter what the property sold for, what your selling expenses were, etc.  Where is that ???

[DaveF1006]

It depends.  Try this precise set of steps to see if you are able to access that section.

1. Go to Rental Properties and Royalties and select Edit on your property.
2. Ensure you checked the box "I sold or disposed of this property" in the Property Profile section.
3. Scroll down to the Assets/Depreciation section and click Start/Update.
4. You must click Edit on the actual "House" or "Structure" asset.
5. Proceed through the screens until you see: "Did you stop using this asset in 2025?" Select Yes.
6. Enter the date sold.
7. This is where the sales price and sales expenses should appear. If it skips from "Date Sold" directly to a summary screen, the software is still locked for your specific property type.

[smjaskilka]

Hello,

Thanks for your reply. 

1.  Yes

2. Yes - (Under "Rental Property Info" > Situations > Sold)

3. No - I entered expenses several weeks ago, which is still there.  The Income section is blank because I rented zero days.  There is no "Start/Update" Button.  But, at the bottom I can edit a "Sold Rental Property" link.  Here, all I can do is add a depreciable asset, and answer yes/no to "Do you have a section 179 carryover..."  When say "No" to this it just circles me back to The list of income and expenses for the year.

4. Yes - clicked on the one and only one address asset.

5.  No, I never get to a screen that says did you stop using this asset in 2025?"

6.   Never come across the "date sold" screen.

7.  The Property Type in the "Rental Property Info" section is "Single Family House"

What next?  Do I have to delete all the data under expenses and start over?  Or, will that still not fix it?

thanks.

[DianeW777]

No, you should not have to delete any rental expenses for 2025. If the property was never used for personal use, then you can enter total days rented and zero personal days. In TurboTax Online I entered $1 to remove 'Needs Review'.

Be sure you select it was used 100% for business. See the notes below to enter the sale data and how to arrive at the selling price for each asset.

If you are using TurboTax Online you may want to use the information below. Close your return before you begin.

Try clearing the cookies and cache.   It handles many issues that seem nonsensical on a regular basis with online activity. Watch to be sure you are selecting 'all time' as example.  Do not use selections like 'last hour' for those browsers that give  you options.

• How to clear your cache

Once this is complete open your return and try again.

First I will place an example of how you prorate the selling price to each of the assets including the land.  

For any asset, such as appliances, that really have no value because they are past the recovery period of five years you can use a zero.

Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset.  Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset. If you want you can check the allocation of building and land in your county real estate tax office, on file now.

Example:  Original Cost (of each asset on your depreciation schedule)

$10,000 Land                = 13.33% 

$50,000 House              = 66.67%

$15,000 Improvements  = 20%

$75,000 Total                 = 100% 

Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.

Passive Activity Loss Entry if applicable:

Assuming your passive losses were carried over each year, this will be a separate and identifiable entry which will carry to the Schedule E.  The full remainder of passive loss carryover is used in the year of sale as an expense. This is combined with your overall rental gain or loss to your Form 1040. 

• When you are on the screen 'Do any of these situations apply to this property?' (Property Profile section), be sure to check the box under Carryovers. 

See my notes below on entering the sales price/expenses for each asset inside the rental activity.

You need to dispose of the property by telling TurboTax how and when it was disposed of.  Follow the instructions below.

1. Click on Search (upper right) > type schedule e > Enter > click Jump to .... link
2. Answer the questions and on under Rent and Royalty Summary, click Edit
3. Click Update to the right of Assets/Depreciation.
4. Do you want to go directly to your asset summary?, click Yes and Continue
5. Click Edit to the right of each asset to be disposed of
6. Go through several screens until you get to Tell Us More About This Rental Asset
7. Click on This item was sold…….   And continue to answer the questions

You might also review information here for more details 

@smjaskilka 

[PatriciaV]

Did you report that you didn't rent the property all year? If so, TurboTax removed all information about your rental property. You can fix this by changing your answer to rented for one day (no personal days). Then go to the Sale of Property topic and enter your sale information.

@smjaskilka

[smjaskilka]

Hello Patricia,

Thanks for your reply.  I tried setting the "Fair Rented Days" to "1" under the "Rental Property Info" and saving that.  I also tried every combination of answers under the "Sold or disposed of property"  in the "Rental Property Info" link.

No matter what I tried above, back under the "Sold Property Link", it didn't change a thing.  It asks about adding depreciable assets and whether I had a Section 179 carryover.  That's it.  Then it circles back.  No opportunity to add sale information at all.  I used Turbo tax the last 2 years or so, it should still have all the information.

[PatriciaV]

Your best option is to use the property information from your prior year return and enter the assets again under Depreciation. You'll need the cost basis and all types of depreciation taken as of the end of last year.

Remove any responses that refer to a sale. Log out, close your browser, then open your browser and log back in. Review the information for your rental to be sure that the property info matches last year. (Skip income & expenses, since you already entered those items).

Go back to the start of the instructions for reporting the sale of the property and see if you can enter the actual sale information. Be sure you don't check the box for "not rented all year."