how do I enter the sale of rental property in turbo tax?

[DoninGA]

See this TurboTax support FAQ for reporting the rental property sale - https://ttlc.intuit.com/turbotax-support/en-us/help-article/real-property/sold-rental-property-repor...

[DawnC]

There are two places to enter the sales, under the basic info for the Property Profile and under Assets/Depreciation from within the applicable rental (in that order). Be sure to continue through the entire section.  The full instructions are linked here - How do I report the sale of my rental property?

You'll need to mark the rental property as sold in two places.   If you've been using TurboTax, you'll have your rental information carryover. If not, you'll need to add it.  The software asks all the relevant questions.

Mark the Rental Sold Under the Property Profile:

• Head into Rental and Royalty Income and answer the basic rental questions >>>
• select to Edit the applicable property (or you'll just start adding the rental) >>>
• Select Update next to Property Profile >>>
• On the screen titled Do any of these situations apply to this property? be sure to indicate I sold or disposed of this property in 2023 by selecting the checkbox.
• Be sure to answer the questions that follow to continue through the

Select the House Sold Under Assets/Depreciation and Enter Sale Information:

• When you are back at the Rental Property Summary Screen select Edit/Update/Start next to the Assets/Depreciation section. 
• You'll need to answer through the election questions the first time you update this section, this year (but you can skip them after that).
• On the summary screen of assets listed under this rental property, click edit next to the house asset (or add it)
• On the first screen you'll be able to check the box to indicate that you sold or disposed of this asset this year.  
• Be sure to answer through this entire section to report all information.

[cc222]

If I identify that I sold a rental single family home in the depreciation section; I cannot get the correct cost basis as it does not include land value from original purchase price.  How do you add that correctly to ensure your capital gain is correct.  

[DawnC]

Add 2 separate assets - one for the land and one for the home.   You must allocate a proportion of the sales price and selling costs to the land based on fair value.    You will report the sale of two assets.   Land doesn't get depreciated so it gets entered separately.  @cc222 

Sale of Rental

[cc222]

Ok how do you put land under depreciation section in order to create sale of rental property?

[cc222]

I have the depreciation schedule set up for the single family home in deprecation schedule, do I need to set up 2 more assets?  One for land, and one more the house?

Very confused

[JamesG1]

You are not required to set up two new assets in the rental activity.  TurboTax Premium Online accounts for the value of the land in the residential rental asset.

Whether you have two assets or the land value is reported within the rental property, the selling price and sales expenses will need to be allocated between the land under the rental property and the structure built upon the land.

If so, in TurboTax Online, follow these directions for the sale/disposal of a rental property.  

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Click on the down arrow to the right of Rentals, Royalties and Farm.
• Click to the right of Rental Properties and Royalties.
• At the screen Your rentals and royalties summary, click the pencil to the right of the property sold.
• At the screen Here's rental property info, scroll down to Assets, click the pencil to the right.
• At the screen Your property assets, click Edit to the right of the rental property.
• Cycle through the questions.
• At the screen Tell Us More About This Rental Asset, select This item was sold, retired, stolen, destroyed, disposed of......
• At the screen Disposition Information, enter the date sold / retired from use.  Continue.
• At the screen Special Handling Required?, review the questions.
• At the screen Home Sale, review.
• At the screen Sales Information, enter numbers for sales price and expenses of sale.  Click on Continue.

At the screen Results, you will find that there will be two sale entries, one for the rental structure and one for the land the structure sits on.

@cc222 

[rahulpandit]

It is very unintuitive in TurboTax Premium online and hard to get an answer from the automated chat system. This is what I documented - https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/turbotax-premium-onli...