Solved: How do I remove improvements listed on my return that are being depreciated once the building is sold?
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steve-2010
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How do I remove improvements listed on my return that are being depreciated once the building is sold?

 
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PatriciaV
Level 7

How do I remove improvements listed on my return that are being depreciated once the building is sold?

Yes, you will need to report that you sold every asset on your Asset Summary page. It's your choice how you report the sale. You can enter your book value (purchase price less accumulated depreciation). Or you can divide up the entire sales price according to the value of the assets that sold. 

To find your book value, look for the Depreciation and Amortization Report from last year. TurboTax includes this as part of the PDF when you download your complete return (see screenshot below - click to enlarge). For each asset, subtract Prior Depreciation and Current Depreciation from the Depreciable Basis. This would be the net amount you may wish to report as the sales price.

Your other option is to add up all your assets' book values (including the condo itself), then calculate the percentage of the total for each asset (ie: $50,000 condo / $200,000 total = 25%). Multiply this percentage by the total sale amount to determine what you enter as the sale price for each asset ($400,000 total sale x 25% condo - $100,000 sales price for condo by itself). 

The second method is more involved, but the outcome is the same. But you do need to report the sale for every asset so that TurboTax accurately reports the sale.

View solution in original post

1 Reply
PatriciaV
Level 7

How do I remove improvements listed on my return that are being depreciated once the building is sold?

Yes, you will need to report that you sold every asset on your Asset Summary page. It's your choice how you report the sale. You can enter your book value (purchase price less accumulated depreciation). Or you can divide up the entire sales price according to the value of the assets that sold. 

To find your book value, look for the Depreciation and Amortization Report from last year. TurboTax includes this as part of the PDF when you download your complete return (see screenshot below - click to enlarge). For each asset, subtract Prior Depreciation and Current Depreciation from the Depreciable Basis. This would be the net amount you may wish to report as the sales price.

Your other option is to add up all your assets' book values (including the condo itself), then calculate the percentage of the total for each asset (ie: $50,000 condo / $200,000 total = 25%). Multiply this percentage by the total sale amount to determine what you enter as the sale price for each asset ($400,000 total sale x 25% condo - $100,000 sales price for condo by itself). 

The second method is more involved, but the outcome is the same. But you do need to report the sale for every asset so that TurboTax accurately reports the sale.

View solution in original post

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