We sold an LLC owned residential rental property in 2022. Specific to the amortized loan fee asset (intangible) and the accumulated amortization expense, how in TT Business 2022 is this input?
after choosing "edit" in the "Select Disposed Asset Screen", choice are "sold, given away, abandoned".
If choosing sold, and recording $0., what happens to the remaining balance of the amortized loan fees?
It does not appear to be in the 8825 form or the 4797 forms?
How is this input to expense the remaining loan fees?
Amortized intangibles are entered as rental activity assets under the Rental Real Estate topic in TurboTax Business. If you haven't recorded this on previous return, you can enter this asset now, including the accumulated amortization. TurboTax will generate a form error if you try to dispose of this asset in the normal way (reporting a sale of $0).
Instead of recording a disposal for this asset, you'll claim the remaining amortization on a new, separate asset. Use the cost equal to the remaining balance after the current year, a loan term as "1" year, the purchase date of January 1, 2022. Your amortization amount should be the total remaining balance. You won't enter a disposal for this asset.
Note that with this option, both entries for the loan fees will be transferred over to next year. When you do your taxes next year, you'll need to delete these assets from your return.