Amending return for sale of rental property in prior year.

[IdahoBaker]

I disposed of rental property in 2021 but did not account for it properly in Turbo Tax. If I file an amended return for 2021, will the disposal/sale be recognized in TT 2022?  (2022 is still trying to deduct depreciation.)

[Mike9241 · Accepted solution]

since you already started 2022, Turbotax 2022 will not know of the disposal even if you amend 2021

since your using desktop here are your options

A:

1) save the 2022 return

2) amend 2021 return

3) start new (this means from scratch) 2022 return transferring the 2021 data at the start. if successful the property should now be completely gone

4) if this doesn't work than delete the new 2022 return and go back  to the original where you'll need to delete that schedule E and any passive loss carryovers related to that property

OR

B:delete that schedule E and any passive loss carryovers related to that property

[IdahoBaker]

Thank you, that makes perfectly good sense.

On my 2021 tax return, I select Amend, but then I cannot find a place to select rental property.  The "what do you need to amend?" dialog does not have a choice for selecting schedule E rental property so that I can declare that I disposed of the property and have the appropriate calculations made.