Form 8825

[Tim12345]

Here's the situation. I'm a partner in an LLC that originates and buys mortgage loans. Last year we had an opportunity to buy a rental property at a good price. We immediately listed it for resale and collected rent for a few months until the sale closed. I'm trying to report the gain on the sale in TurboTax business. Form 4797 is calculating the correct amount of the gain and then sending it to page 1 line 6 of form 1065 which is incorrect. It should be going to line 19 on form 8825. Any idea how to correct this? I can manually override but I don't think that's enough to correct the underlying issue. 

Thanks in advance. 

[Carl]

If the few months you collected rent does not cross tax years, then you don't need to bother with depreciation since you're not required to depreciate an asset thats in service for less than 12 months if it doesn't cross tax years. Then just add the "few months" of collected rent to your sale price and be done with it.

[tagteam]

I am not certain whether it has any bearing on the flow, but property placed in service and disposed of in the same year is not allowed a deduction for depreciation. 

See https://www.irs.gov/publications/p946#en_US_2018_publink1000107322

How did you initially enter the transaction?