How do I report that I sold rental property? Under "Your Property Assets," I'm told to edit. Clicking the edit option starts an endless loop.

Unfortunately, the IRS rules require you to include accumulated depreciation for your property when it is sold, even if you did not take the expense in prior years. You might need to update the asset before you report the sale.

 

Here is the reference: 

 

Rental Property IRS Pub 527 Claiming the Correct Amount of Depreciation "If you did not claim all the depreciation you were entitled to deduct, you must still reduce your basis in the property by the full amount of depreciation that you could have deducted."

 

Note that Rental Property sales are entered in two places under Rental Properties.

 

1. Open your return, go to Tax Tools >> Tools >> Topic Search. Search on "schedule e" then click the link.
2. On the Rental and Royalty Summary page, click Edit (pencil icon) beside the property you sold.
   (If you didn't report this property last year, you'll need to complete all the interview questions, including setting up the asset(s) for depreciation.)
3. Click Edit beside the Rental Property info.
4. Under General Info: "Situations" (or on the page "Do Any of These Situations Apply?"), click "I sold or disposed of this property." Continue through the screens to the Property Rental Summary page.
5. Click Edit beside Sold Rental Property.
6. Go directly to your asset summary and click Edit beside the rental asset you sold.
7. Continue to the page "Tell Us More About This Rental Asset" and check the box for "The item was sold..." Enter the date of the sale in the pop-up box.
8. Follow the prompts to enter the sale information.
9. Continue back to the Property Summary page. Click Done and answer any follow-up questions.