Sold rental property that is represented by multiple assets in Turbo Tax

[tojinyu]

I sold my 2 bd condo in 2018.

I rented out 1 bd for 6 years, when I also lived there. Then I moved out, and started renting out the entire condo 3 year ago.

So in my Turbo Tax, the condo is represented by 2 assets - 1 for the single bedroom rented out for (6+3) year, 1 for rest of the condo rented out for 3 years.

Now I sold my condo, how can I report that I sold both assets? Can I combine them back to one asset? The software only support entering sale information for individual asset.

[KittyM · Accepted solution]

As long as you report 100% of the sale price, you can allocate it in any way that is practical - my suggestion would be to do it as a percentage of the total amount of the assets you were reporting. 

For example, if the first property is 25% of the total asset, and the second property is the other 75%, then report 25% of the sale price with the first property and the remainder with the second property.  In the end, the numbers will work out correctly for the total sale.

Do not combine your assets back into one asset - this will confuse the IRS.

[tojinyu]

Hi, Thanks for your reply. It's a bit more complicate. For last 3 year, I also paid about $10K special assessment (HOA) each year (total $30K) for new siding, new roof and new windows. So I also created 3 assets to represent each of the special assessment. For those assets, how can I allocate the sales to them? I have total 5 assets now representing my condo...

[KittyM]

You can allocate by a percentage of a total, or sell some assets for zero.  It's really your personal call, as long as you report your complete selling price and the total gain or loss on the sale.