Future 2025 Sale of 100% Rental Property

[Benjamine]

My tenant has vacated the property as of Jan 8, 2025 (no rent charged for January 2025).  The property will be listed for sale next week and no longer available for rental.  Purchased in 2013 and depreciated per TT Schedule E.  As of Tax Year 2023, the only depreciation currently taken is the residence and 15% business use of vehicle (placed in service 10/22).  All other assets have zero depreciation after 5 year life such as appliances and flooring. 

Based on what I've read - when I do report the sale in 2025, I need to assign a dollar amount of the sales price to each remaining asset.  There are none that I am able to take out of service at this time. 

I am assuming that I do nothing differently than every prior year when completing the taxes.  

1.  Do I need to take the vehicle out of service/convert to personal use as of 12/31/24?  I will still be using it to maintain the property, etc., until it is sold.  Is the vehicle even deductible at the point where the property is not for rent?

2.  Are there any suggestions to make this as uncomplicated as possible for Tax Year 2025?

Many thanks for any insight!  

[RobertB4444]

You made it as uncomplicated as you could already!  By not renting the property at all in 2025 you won't have to do a partial year's rental income and expenses.  Depending on when it actually sells you may have to take some depreciation for the year but otherwise it should be pretty smooth sailing.

TurboTax will roll the rental property over from 2024 into 2025.  When you go into your 2025 taxes you will tell the system that you sold the property and for how much.  It will assign a value to all of the assets and set up the sale on your return.  

As far as the car goes - you will need to report the sale of the car if and when you do sell it.  For this year convert it to personal use.

@Benjamine