Depreciation rental property

[Jolebo]

How do I credit for improvements that didn't get fully depreciated by time of sale?

[view2 · Accepted solution]

When the improvements are added as an asset in Turbotax , Turbotax  will take the improvements into considerations in computation of gain or loss.

IF.

The total sales price should be allocated among all the assets (land, rental property, improvements, etc.)

 If you have already allocated 100% of the sales price, then enter zero [entering the "0" will trigger the calculations] for these remaining assets and improvements.

Enter the date of sale (same as the rental property) for each asset/improvement.

Turbotax will automatically "write off" the remainder of the basis (cost minus depreciation). You don't have to manually do that.

You have to edit each asset that is listed for the rental property and enter the same date and the zero in the the sale section to have each asset to be used in the calculations.

All assets will then be includes in disposition sale of rental property.