proper accounting for sale of rental property

[tonyactc]

having a little trouble getting this in properly and hoping someone might take a quick look.

sold rental prop in 2018 that was acquired in 2011

First i'm trying to enter all the depreciation items but turbotax flags the depreciation schedule I'm copying from previous tax returns done by an accountant.  for instance

asset class H land improvement, property type trade or business, accountant used 10yr 200 DB HY, I can only get this in by going to the form and manually entering it. turbotax flags the 10 yr fld in red saying asset class is being overridden, is this ok or is something entered incorrectly.

Next question is on the sale, for the sale price do I use the gross sale price. for instance if the house sold for 100K before commissions and other expenses is that the number I use. then do percentages for all assets on sale price and expenses of sale.

last question. can I deduct any repair expenses (not depreciated) through the years that I deducted in those years. are they considered improvements in any way and can they raise the cost basis of the home.

thanks for any help

[Critter]

If you are using the ONLINE version upgrade to the LIVE option for one on one assistance and review. 

[Carl]

It "sounds" like this is the first year you are using TurboTax to report anything concerning rental property. Is this so?

[Anonymous]

land improvements should have been 15-year property if they meet this definition from IRS PUB 946

15-year property.  a.Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges).

there is nothing in the 10-year property category that would meet the definition of land improvement.

15-year property uses 150% MACRS, not 200%. you have over-depreciated that property.  since it's been sold, I would not bother to amend prior years.  

for each asset, you enter its gross sales price and right below it expenses of sale which would normally be in proportion to the sales price.   Sales price is supposed to be allocated based on the relative FMV on the date of sale.     

"last question. can I deduct any repair expenses (not depreciated) through the years that I deducted in those years. are they considered improvements in any way and can they raise the cost basis of the home."

you can not deduct items you have already expensed.  you took the position that they were not subject to capitalization.  

[tonyactc]

that is correct all previous returns were done by an accountant

[tonyactc]

I'm not using the online version. Is there a way to get a review with the offline version.

I see the send tax file to agent option, not sure what that is.

thank you

[tonyactc]

Thank you HACKITOFF

I appreciate the help

[Critter]

@tonyactc 

The Downloaded version doesn't have an online review option ... the send a copy tool is if you are having technical issues but they cannot talk tax law. 

You do have the option to switch to the FORMS mode anytime and review what you have so far ... however all corrections should be made in the Step by Step mode. 

This is my mini version of  a tutorial  that should be in the downloaded program: 

 

What is Forms Mode?

Forms Mode lets you view and make changes to your tax forms "behind the scenes."

If you're adventurous, you can even prepare your return in Forms Mode, but we don't recommend it. You may miss obscure credits and deductions you qualify for, and you may forget to report things that will come back and haunt you later.

Forms Mode is exclusively available in the TurboTax CD/Download software. It is not available in TurboTax Online.

Related Information:

• Why would I use Forms Mode?
• How do I switch to Forms Mode in the TurboTax for Windows software?
• How do I switch to Forms Mode in the TurboTax for Mac software?

If you want to play around with different figures and tax scenarios without affecting your original return you can ….

• >>>In the TurboTax CD/Download software by creating a test copy: 
• 1.  Open your return in TurboTax. 
• 2.  From the File menu, choose Save As. 
• 3.  Give the copy a new name to distinguish it from the original (for example, by adding "Test" or "Example" to the file name). 
• 4. Click  Save. You are now safely working in the test copy and anything you do here will not affect the original. 
•  https://ttlc.intuit.com/questions/1900642-how-to-make-a-test-copy-of-your-return

• >>  use the WHAT IF tool: 
• - Click Forms Icon (upper right of screen) or Ctrl 2 (forms view) 
• - Click on the Open Form Icon 
• - In the “Type a form name.” area type What-If (with the dash), click on the name of the worksheet - click on Open Form 
• - You will see the worksheet on the right side of the screen; enter the information right into the form 
• - To get back to interview mode - click on the Step-by-Step Icon (upper right of screen) or Ctrl 1

It's always a good idea to make a backup copy of your tax data file, in case your original gets lost or corrupted. Here's how:

1. From the File menu in the upper-left corner of TurboTax, choose Save As (Windows) or Save (Mac).
2. Browse to where you want to save your backup.
   • Tip: If you're saving to a portable device, save it to your computer first to prevent data corruption. Then, after completing Step 4, copy or move the backup file to your device.
3. In the File name field, enter a name that will distinguish it from the original tax file (for example, add "Backup" or "Copy" to the file name)
4. Click Save and then close TurboTax.
5. Restart TurboTax and open the backup copy to make sure it's not corrupted. If you get an error, delete the backup and repeat these steps.

If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.

Related Information:                             

• Retrieve a Tax File from a Portable Device
• What's the difference between the tax data file and the PDF file?

AND save it as a PDF so you have access to a copy even if you don’t have the program still installed and operational :

• How do I save my return as a PDF in the TurboTax software for Windows?
• How do I save my return as a PDF in the TurboTax software for Mac?

AND protect the files :

• How can I protect the tax files on my computer?

[Critter]

@tonyactc 

Using the FORMS mode you can review the errors ... look for the red ! marks in the list on the left and then the pink box on the form in the view window ... if you know what the error is you can correct it easier.  

Another hint:  when you flip flop between modes notice how it will usually keep you on the same form (or section) which makes it easier to make corrections.